RAK Government Issues Price Guidance for 10-Year USD Benchmark Sukuk
IPTs Set at Treasuries +120 bps
RAK has announced the price guidance for its 10-year USD-denominated Reg S benchmark sukuk. The initial price thoughts (IPTs) are at Treasuries +120 basis points (bps) area. The sukuk will be listed on Nasdaq Dubai. Investors expect strong demand for this issuance. Market analysts anticipate significant interest from regional and global investors.
RAK Capital Named Sukuk Trustee
RAK Capital serves as the sukuk trustee for this issuance. The Government of Ras Al Khaimah is acting through its Investment and Development Office. The settlement date for the sukuk is 12 March 2025. Investors seek stable returns from this structured issuance. Financial experts consider this sukuk a valuable addition to the market.
Proceeds to Support Government Initiatives
RAK plans to use the proceeds for general government and budgetary purposes. The funds will support various development projects and financial needs. The government focuses on sustainable growth and economic stability. These funds will enhance infrastructure and key public services. Economic planners emphasize the importance of this sukuk for long-term development.
Leading Banks Mandated
Several major banks have been appointed as Joint Global Coordinators for the sukuk. Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, RAKBANK, and Standard Chartered Bank are leading the issuance. Citi and Emirates NBD Capital are also acting as Sukuk Structuring Agents. Investors benefit from expert financial institutions managing this issuance. Banking executives highlight strong collaboration in structuring this sukuk.
RAK Maintains Strong Credit Ratings
RAK holds strong credit ratings from both S&P and Fitch. The emirate has been rated A/A+ with a stable outlook, reflecting its solid economic position. The government remains committed to maintaining fiscal discipline. Financial analysts predict continued stability for RAK’s economic outlook.
RAK Strengthens Its Financial Position
This sukuk issuance aligns with RAK’s financial strategy. The government aims to optimize funding sources while maintaining fiscal stability. Investors see RAK as a secure and attractive market. The issuance will enhance the emirate’s liquidity and financial strength. Market confidence in RAK’s financial stability remains strong.