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