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.For all the latest banking and finance 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.