(Provides quotes, background) By Yousef Saba DUBAI, Sept 8 (Reuters) – Bahrain has employed banks to rearrange a multi-tranche sale of U.S. dollar-denominated sukuk and bonds that might be the nation’s second bond challenge this 12 months, a doc from one of many banks arranging the deal confirmed on Tuesday. The small oil producer, which averted a credit score crunch in 2018 with a $10 billion support package deal from its rich Gulf neighbours, raised $2 billion in May to bolster funds battered by low oil costs and the coronavirus disaster. “Appetite for yield is high at the moment so I think demand will be high for Bahrain, as it’s perceived as a lower-rated country backed by the rest of the GCC,” stated Raffaele Bertoni, head of debt capital markets at Gulf Funding Company, referring to the six-member Gulf Cooperation Council. Bahrain, rated B+ by S&P and Fitch, employed Bank ABC, Citi, Gulf Worldwide Bank, HSBC, Nationwide Bank of Bahrain and Customary Chartered to rearrange an investor name on Tuesday, the doc stated. It plans to challenge seven-year sukuk, or sharia-compliant bonds, in addition to 12-year typical bonds and/or 30-year typical bonds, topic to market circumstances. “They will have no difficulty placing the shorter-dated sukuk with regional investors. Pricing on the 12-year or possible 30-year bond will be driven by international investors,” stated Doug Bitcon, head of credit score methods at Rasmala Funding Bank. A hard and fast revenue strategist anticipated the sukuk to be priced to yield round 4.5% and the 12-year bonds round 5.5%, including there was an expectation amongst traders that additional Gulf support for Bahrain could be forthcoming if wanted. “The 30-year could be priced around 6.25%, which is significant since Bahrain issued four-year sukuk in May this year at that level,” he stated. (Reporting by Yousef Saba; Enhancing by Andrew Heavens and Catherine Evans)Our Requirements:The Thomson Reuters Belief Rules.