Ras al Khaimah issues US$500mn sukuk

Ras al Khaimah issues US$500mn sukuk

Published: October 9, 2013

Emirate makes first bond-market foray since 2010. 

Ras al Khaimah, a member of the United Arab Emirates, has raised US$500mn through a five-year sukuk.

The Islamic bond priced at 3.297%, 175 basis points above midswaps – at the bottom end of the 175-180 bp guidance range given on Monday. Total orders were in excess of US$5bn.

The sukuk was arranged by Abu Dhabi’s Hilal Bank and National Bank of Abu Dhabi, Dubai’s Mashreq, Citi and Standard Chartered Bank. It is part of the government's US$2bn sukuk fundraising programme.

The last time that Ras al Khaimah went to the bond market was August 2010, when it raised US$400mn through six-year paper.