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Tue 8 Oct 2013 02:25 PM

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UAE's Ras Al Khaimah prices $500m sukuk

Heavy demand seen from investors for rare move into debt capital markets by emirate

UAE's Ras Al Khaimah prices $500m sukuk
The impact of the global recession has seen worldwide sales of sukuk decline 24 percent this year to $12bn.

The emirate of Ras al Khaimah, one of the seven members of the UAE, priced its $500 million five-year Islamic bond on Tuesday, with high
investor demand for its rare debt capital markets offering.

The sukuk priced at par with a profit rate of 3.297 percent and a spread of
175 basis points over midswaps, a document from lead managers said.

The spread was at the tight end of revised price guidance, issued earlier on
Tuesday, of 175-180 bps over the same benchmark and well inside the 200 bps
initial guidance given on Monday.

Such tightening came after high investor demand - order books were in excess
of $5 billion.

Abu Dhabi-based Al Hilal Bank, Citigroup, Dubai's Mashreq, National Bank of
Abu Dhabi and Standard Chartered arranged the sukuk for RAK, which was issued
through its Investment and Development Office.

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