In accordance with Article 141 of the Bahrain Commercial Companies Law, licensees must comply with the statutory requirement whereby the total value of existing bonds issued by the licensee must not exceed the issued and fully paid up capital and the undistributed reserves according to the latest balance sheet approved at the annual general meeting. This statutory requirement does not apply to bonds guaranteed by the state or by one of the public entities and bonds issued by financial institutions regulated by the CBB, and with the approval of the CBB.

January 2014