emirates7 - The Government of Ras Al Khaimah, through the Ras Al Khaimah Investment and Development Office, successfully closed its 10-year US$1 billion senior unsecured sukuk offering at a profit rate of 5.038% on March 5, 2025.
After a 10-year hiatus, the Government of Ras Al Khaimah entered the international debt capital market, with the sukuk issuance completed under the US$2 billion Trust Certificate Issuance Programme, signed on February 28, 2025. The sukuk was issued by RAK Capital, a special purpose vehicle affiliated with the government.
This issuance follows S&P Global Ratings' affirmation of an ‘A’ rating and Fitch’s affirmation of an ‘A+’ rating on RAK Capital’s sukuk programme, which aligns with the ratings assigned to the Government of Ras Al Khaimah.
The sukuk complies with the latest Shari’a standards, as outlined by the UAE Central Bank Higher Shari’a Authority, ensuring that the sale of ijara assets is enforceable and includes a decree for the registration of real estate ijara assets, adhering to a highly Shari’a-compliant structure.
The Government of Ras Al Khaimah announced the sukuk issuance on March 3, 2025, and held virtual roadshows to engage with global investors from regions including Asia, the GCC, Europe, and the UK. Following the roadshow's success, RAK Capital priced the sukuk on March 5, 2025, and listed it on Nasdaq Dubai.
The transaction was initially priced at 10-year US Treasury plus 120 basis points. Strong demand, with an order book exceeding US$4.4 billion, allowed the final pricing to be reduced by 40 basis points to 10-year US Treasury plus 80 basis points.
The sukuk issuance was subscribed to by investors globally, with 57.8% from MENA, 35% from the UK/continental Europe, and 7.2% from Asia and other regions.
Citi and Emirates NBD Capital served as Structuring Advisors, while Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, RAKBANK, and Standard Chartered Bank acted as Joint Global Coordinators.
An official spokesperson for the Government of Ras Al Khaimah expressed satisfaction with the strong global investor interest, highlighting the 4.4 times oversubscription level. The spokesperson noted that the final pricing reflected the government’s strong credit standing and fiscal management, marking an endorsement from the international investor community for Ras Al Khaimah’s continued growth and success.
After a 10-year hiatus, the Government of Ras Al Khaimah entered the international debt capital market, with the sukuk issuance completed under the US$2 billion Trust Certificate Issuance Programme, signed on February 28, 2025. The sukuk was issued by RAK Capital, a special purpose vehicle affiliated with the government.
This issuance follows S&P Global Ratings' affirmation of an ‘A’ rating and Fitch’s affirmation of an ‘A+’ rating on RAK Capital’s sukuk programme, which aligns with the ratings assigned to the Government of Ras Al Khaimah.
The sukuk complies with the latest Shari’a standards, as outlined by the UAE Central Bank Higher Shari’a Authority, ensuring that the sale of ijara assets is enforceable and includes a decree for the registration of real estate ijara assets, adhering to a highly Shari’a-compliant structure.
The Government of Ras Al Khaimah announced the sukuk issuance on March 3, 2025, and held virtual roadshows to engage with global investors from regions including Asia, the GCC, Europe, and the UK. Following the roadshow's success, RAK Capital priced the sukuk on March 5, 2025, and listed it on Nasdaq Dubai.
The transaction was initially priced at 10-year US Treasury plus 120 basis points. Strong demand, with an order book exceeding US$4.4 billion, allowed the final pricing to be reduced by 40 basis points to 10-year US Treasury plus 80 basis points.
The sukuk issuance was subscribed to by investors globally, with 57.8% from MENA, 35% from the UK/continental Europe, and 7.2% from Asia and other regions.
Citi and Emirates NBD Capital served as Structuring Advisors, while Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, RAKBANK, and Standard Chartered Bank acted as Joint Global Coordinators.
An official spokesperson for the Government of Ras Al Khaimah expressed satisfaction with the strong global investor interest, highlighting the 4.4 times oversubscription level. The spokesperson noted that the final pricing reflected the government’s strong credit standing and fiscal management, marking an endorsement from the international investor community for Ras Al Khaimah’s continued growth and success.