Ras al-Khaimah prices five-year sukuk

14 July 2009

The emirate of Ras al-Khaimah has set a guide price for a five-year sukuk issue at up to 8.25 per cent.

France’s BNP Paribas and the UK’s Standard Chartered Bank are acting as arrangers on the bond, which is expected to be about $500m in size. The emirate could decide to raise more money through the bond, depending on market demand.

Ras al-Khaimah conducted an international investor roadshow in the first week of July and the bond is expected to be issued in mid-July.

Ras al-Khaimah has an A credit rating from agencies Standard & Poor’s and Fitch Ratings.

In February 2008 the emirate priced its debut sukuk at 115 basis points over the London interbank offered rate (Libor). The deal raised AED1bn ($277m) for the emirate.

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