DUBAI: Bahrain plans to launch a BD250 million ($663.3m) three-year sovereign bond, the central bank said, weeks after announcing a $500m issue to raise money to offset lower oil revenues.

Bahrain's central bank governor said last month the kingdom was finalising a $500m sukuk, half of which would go towards refinancing an existing bond maturing in June. The central bank said the dollar-denominated bond would have a five year maturity and would be issued on May 27 with the coupon to be decided later.

Bahrain has yet to set a date for the three year bond, it said.

Bahrain plans to spend BD1.78 billion this year and BD1.89bn next year, under a budget recently passed by parliament.

But like other countries in the region, Bahrain has been hit by declining oil prices as the global financial crisis dampens growth in major economies. Oil prices have fallen to around a third of their peak near $150 a barrel in July. Around 75pc of Bahrain's revenues come from energy.