Hikma Pharma shares drop on reports of the company's first benchmark bond issuance

Middle East focused Hikma Pharmaceuticals is reportedly planning to sell its first benchmark-sized dollar bonds, according to two people familiar with the sale.Bloomberg News on Tuesday cited sources close to the deal in its report. Shares in Hikma fell 1.8% to 2217p on the back of the report, as market participants sought to ascertain the driver behind the company's need to raise capital.Analysts think it may have to do with recent news over the FTSE Group announcing at its quarterly reshuffle that Hikma will be promoted into the UK's FTSE 100 Index of London leading shares on March 24. The stock is currently located in the FTSE 250 Index together with a listing in NASDAQ Dubai.Hikma was founded in Jordan in 1978 and develops and manufactures a range of branded and non-branded drugs for US and European markets but with a focus on the Middle East and North Africa.According to Bloomberg's report, Hikma has selected Barclays, Citigroup, HSBC and National Bank of Abu Dhabi to manage the sale of its first benchmark bond which may have a tenor of five years, say sources.Benchmark-sized bonds tend to raise at least $500m when issued in the market. Bond issuances in the Middle East and North Africa rose 78% to $9.3bn this year, according to data compiled by Bloomberg, as issuers flood the market before the Federal Reserve starts its rate hiking measure, expected this year.According to Bloomberg, Hikma, Barclays, Citigroup and National Bank of Abu Dhabi all declined to comment and a spokesman for HSBC couldn't immediately be reached.