logo
Ras Al Khaimah government completes $1 billion sukuk issuance

Ras Al Khaimah government completes $1 billion sukuk issuance

Khaleej Times09-03-2025

The Government of Ras Al Khaimah, acting through the Investment and Development Office of Ras Al Khaimah, successfully closed its offering of a 10-year $1 billion senior unsecured sukuk at a profit rate of 5.038 per cent on March 5, a statement said.
The Government of Ras Al Khaimah tapped the international debt capital market after 10 years and the issuance of the sukuk was completed under the government's $2 billion trust certificate issuance programme which was signed on February 28.
The sukuk was issued under the programme by RAK Capital, a special purpose vehicle affiliated with the Government of RAK. The issuance follows S&P Global Ratings' affirmation of its 'A' rating and Fitch's affirmation of its 'A+' rating on RAK Capital's sukuk programme, which is in line with the credit agencies' ratings for the emirate's government.
The sukuk is consistent with the most recent Shariah developments, as promulgated by the UAE Central Bank Higher Shariah Authority, with the sale of the ijara assets being an enforceable sale with a specific exemption by decree for registration of the real estate ijara assets. 'In this manner, the RAK Government has adhered to the most Shariah-compliant structure,' a statement said.
The RAK government announced the issuance on March 3 and conducted virtual roadshows to meet multiple investors from across the globe, including Asia, the GCC, Europe and the UK. Following the successful roadshow, RAK Capital priced the transaction on March 5 while listing the sukuk on Nasdaq Dubai.
The transaction was launched at an initial pricing guidance of 10-year US Treasury plus 120 bps. Strong investor demand and an orderbook of over $4.4 billion enabled the government to compress the final pricing by 40 bps to 10-year US Treasury plus 80 bps. The issuance was subscribed by global investors including 57.8 per cent from Mena, 35 per cent from the UK/continental Europe and 7.2 per cent from Asia and others.
Citi and Emirates NBD Capital acted as structuring advisers, 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 said: 'The Government of Ras Al Khaimah is delighted with the overwhelming response that we have received from investors globally. The strong investor demand demonstrates confidence in Ras Al Khaimah's creditworthiness, fiscal management and economic fundamentals, which is exemplified by the high oversubscription level of 4.4 times for the issuance. The New Issue Concession priced into the deal was -10 bps, which is a clear recognition of Ras Al Khaimah's strong credit position and a stamp of approval from the international investor community for the Emirate's remarkable growth and success story.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Sharjah Islamic Bank lists $500m sukuk on Nasdaq Dubai
Sharjah Islamic Bank lists $500m sukuk on Nasdaq Dubai

Khaleej Times

time9 hours ago

  • Khaleej Times

Sharjah Islamic Bank lists $500m sukuk on Nasdaq Dubai

Sharjah Islamic Bank on Tuesday listed a $500 million Additional Tier 1 (AT1) sukuk on Nasdaq Dubai. This latest transaction brings the Bank's total outstanding on Nasdaq Dubai to $2.5 billion across five listings. With this listing, the total value of Sukuk listed on Nasdaq Dubai has reached $95.7 billion, underlining its status as one of the world's largest venues for Islamic fixed-income securities. Nasdaq Dubai's broader debt capital market has now surpassed $136 billion across 160 listings, reflecting growing international confidence in Dubai as a gateway for capital flows between the Middle East and the world. The perpetual, non-call six-year AT1 Capital Certificates were issued by SIB Tier 1 Sukuk IIND Ltd and are compliant with Basel III regulations. The issuance attracted strong interest from both regional and international investors, providing Sharjah Islamic Bank with additional capital to fuel its long-term growth plans. To mark the occasion, Ahmed Saad, DCEO of Sharjah Islamic Bank rang the market opening bell at Nasdaq Dubai in the presence of Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM). Saad said: 'The successful listing of our $500 million perpetual Additional Tier 1 Sukuk on Nasdaq Dubai marks a significant milestone in Sharjah Islamic Bank's strategic growth journey. This issuance reflects our strong fundamentals, robust investor confidence, and commitment to maintaining a solid capital base in line with Basel III requirements. We are proud to deepen our relationship with Nasdaq Dubai, a platform that continues to champion innovation and global best practices in Islamic finance. As we expand our presence in international markets, we remain committed to contributing to the sustainable development of the UAE's financial sector and the broader Islamic capital market ecosystem.' Ali said: 'This listing is part of a broader shift as regional institutions like Sharjah Islamic Bank lead the deepening of local debt markets. As demand for diversified, Shariah-compliant instruments continues to grow, Nasdaq Dubai is proud to serve as a trusted platform for innovation in Islamic finance. The momentum we are seeing in Sukuk issuances signals a maturing financial ecosystem where local ambition meets global capital flows. SIB's continued engagement underscores the strategic role financial institutions play in building resilient, forward-looking capital markets across the UAE and beyond.'

Sharjah Islamic Bank lists $500 million sukuk on Nasdaq Dubai
Sharjah Islamic Bank lists $500 million sukuk on Nasdaq Dubai

Sharjah 24

time10 hours ago

  • Sharjah 24

Sharjah Islamic Bank lists $500 million sukuk on Nasdaq Dubai

These perpetual sukuk, which cannot be redeemed before six years, were issued by the entity "SIB Tier 1 Sukuk IIND Ltd." They comply with Basel III requirements and saw strong demand from regional and international investors, providing the bank with additional capital to support its long-term growth plans. With this listing, the total value of sukuk listed by Sharjah Islamic Bank on Dubai Nasdaq has risen to $2.5 billion through five listings, enhancing Dubai's strategic role in developing the Islamic capital markets ecosystem. To celebrate the listing, Ahmed Saad, Deputy CEO of Sharjah Islamic Bank, rang the opening bell for the trading session at Dubai Nasdaq, alongside Hamed Ali, CEO of Dubai Nasdaq and Dubai Financial Market. Ahmed Saad stated that the listing of the $500 million perpetual capital sukuk on Dubai Nasdaq is a strategic step that enhances Sharjah Islamic Bank's position as a leading financial institution trusted by investors both locally and internationally. He noted that this issuance supports their long-term growth plans and strengthens their capital base in line with Basel III requirements, solidifying their financial position. He emphasized the importance of the ongoing partnership with Dubai Nasdaq, the leading platform that serves as a comprehensive window to global markets, providing a stimulating environment to attract capital. He mentioned that through this listing, Sharjah Islamic Bank reaffirms its commitment to supporting the UAE's efforts to establish itself as a global hub for Islamic finance and actively contribute to the growth and sustainability of this vital sector. For his part, Hamed Ali, CEO of Dubai Nasdaq and Dubai Financial Market, confirmed that this listing is an important step that goes beyond capital raising, reflecting a comprehensive shift led by pioneering regional institutions like Sharjah Islamic Bank towards developing and diversifying local debt markets. He clarified that as the demand for diverse investment instruments compliant with Islamic law continues to grow, Dubai Nasdaq is solidifying its position as a trusted center for innovation in the Islamic finance sector. The ongoing momentum in sukuk issuances serves as tangible evidence of the maturity of the financial ecosystem, which now bridges local aspirations with global capital flows. He added that the continuous relationship with Sharjah Islamic Bank underscores the strategic role that financial institutions play in building robust capital markets that keep pace with future changes in the UAE and beyond. With this listing, the total value of sukuk listed on Dubai Nasdaq reached $95.7 billion, reinforcing its position as one of the largest global destinations for listing Sharia-compliant fixed-income instruments. The total debt instruments market on Dubai Nasdaq has surpassed $136 billion, distributed across 160 listings, reflecting the growing confidence of international investors in Dubai's status as a key destination connecting capital flows between the Middle East and the world.

Nasdaq Dubai welcomes listing of $500 million AT1 Sukuk by Sharjah Islamic Bank
Nasdaq Dubai welcomes listing of $500 million AT1 Sukuk by Sharjah Islamic Bank

Gulf Today

time13 hours ago

  • Gulf Today

Nasdaq Dubai welcomes listing of $500 million AT1 Sukuk by Sharjah Islamic Bank

Nasdaq Dubai today welcomed the listing of a US$500 million Additional Tier 1 (AT1) Sukuk issued by Sharjah Islamic Bank (SIB). The perpetual, non-call six-year AT1 Capital Certificates were issued by SIB Tier 1 Sukuk IIND Ltd and are compliant with Basel III regulations. The issuance attracted strong interest from both regional and international investors, providing Sharjah Islamic Bank with additional capital to fuel its long-term growth plans. This latest transaction brings the Bank's total outstanding on Nasdaq Dubai to $2.5 billion across five listings. It also reinforces Dubai's strategic role in advancing the Islamic capital markets ecosystem. To mark the occasion, Ahmed Saad, DCEO of Sharjah Islamic Bank, rang the market opening bell at Nasdaq Dubai in the presence of Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM). Saad commented, 'The successful listing of our $500 million perpetual Additional Tier 1 Sukuk on Nasdaq Dubai marks a significant milestone in Sharjah Islamic Bank's strategic growth journey. This issuance reflects our strong fundamentals, robust investor confidence, and commitment to maintaining a solid capital base in line with Basel III requirements." Ali stated, "This listing reflects more than capital raising —it's part of a broader shift as regional institutions like Sharjah Islamic Bank lead the deepening of local debt markets. As demand for diversified, Shariah-compliant instruments continues to grow, Nasdaq Dubai is proud to serve as a trusted platform for innovation in Islamic finance. "The momentum we are seeing in Sukuk issuances signals a maturing financial ecosystem where local ambition meets global capital flows. SIB's continued engagement underscores the strategic role financial institutions play in building resilient, forward-looking capital markets across the UAE and beyond." With this listing, the total value of Sukuk listed on Nasdaq Dubai has reached $95.7 billion, underlining its status as one of the world's largest venues for Islamic fixed-income securities. Nasdaq Dubai's broader debt capital market has now surpassed $136 billion across 160 listings, reflecting growing international confidence in Dubai as a gateway for capital flows between the Middle East and the world. WAM

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store