Batelco of Bahrain plans to buy back a third of its outstanding bonds due 2020, using excess liquidity from a scrapped takeover, to lower its debt servicing costs, Reuters reported. Batelco reversed its USD 100 million acquisition of a 25 percent stake in Compagnie Monegasque de Communication from Cable Wireless Communications at the end of December, as it ran into regulatory problems. The operator has offered to buy back up to USD 200 million in principal amount of its 4.25 percent, USD 604.4 million guaranteed notes maturing in 2020, with the price being determined through a modified Dutch auction process.

The buy-back is not expected to strain Batelco’s liquidity position, said Reuters, as the company reported cash reserves of BHD 199 million at the end of 2013, more than double the BHD 99 million held at the end of 2012. Batelco began buying back its 2020 notes in November and it had bought back USD 39.5 million worth by 31 December. The results of the bond tender will be announced on 01 April, with the transaction due to close on 04 April.