National Bank of Ras Al Khaimah joins others from the Gulf Arab state in tapping bond markets
UAE-based lender National Bank of Ras Al Khaimah (RAK Bank) launched its debut $500 million, five-year bond on Tuesday after tightening the pricing, a document from lead managers said.
Tightened pricing for the bond was given at 160 basis points over mid-swaps, against initial price thoughts in the area of 170 bps on Monday.
RAK Bank, rated BBB-plus by Fitch, attracted books of over $1.5 billion for its offer, the document said. The bank has chosen National Bank of Abu Dhabi and Standard Chartered to arrange the bond sale.
The UAE's sixth-largest lender by market value joins others from the Gulf Arab state in tapping bond markets at a time when borrowing costs have tightened thanks to increased interest from foreign investors and turmoil in other emerging markets.
The government of Ras al-Khaimah, one of the seven emirates which make up the UAE, owns just over 50 percent of RAK Bank.