The government of Ras al Khaimah, one of seven emirates making up the UAE, is planning a bond issue worth at least $500 million, a newspaper reported on Friday, citing banking sources.
Royal Bank of Scotland and Citigroup were among the arrangers for the "benchmark-size" bond issue, the daily Gulf News cited banking sources as saying.
A banker involved in the deal told Gulf News: "The government could be targeting a larger deal."
A government official in Ras al Khaimah, the UAE's most northern emirate, would not confirm plans for a bond issue but told Reuters the emirate was planning to reduce its debt towards the end of the year.
Without giving further details, the official said: "Ras al Khaimah is looking at a number of mechanisms to do so."
Ras al Khaimah has an A rating from Fitch and Standard & Poor's.
In May 2008, Ras al Khaimah announced an Islamic bond programme worth up to $2 billion to fund infrastructure projects and launched the first, $272 million tranche in the same month. Last year, the emirate issued another $400 million worth of sukuk.
The government of Dubai in September launched its first sovereign bond issue since a debt crisis that rattled investors a year ago, attracting healthy demand for the $1.25 billion on offer.For all the latest UAE news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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