Ras Al Khaimah: The Government of Ras Al Khaimah, through its Investment and Development Office, has successfully closed a 10-year $1 billion senior unsecured sukuk offering at a 5.038% profit rate on March 5. This marks the first time in a decade that the government has tapped into the international debt capital market, completing the issuance under its $2 billion Trust Certificate Issuance Programme, which was signed on February 28.
According to Bahrain News Agency, the government announced the issuance on March 3, conducting virtual roadshows to engage with investors globally, including those in Asia, the GCC, Europe, and the UK. The successful roadshow culminated in RAK Capital pricing the transaction on March 5, 2025, and listing the sukuk on Nasdaq Dubai.
The sukuk issuance was launched with an Initial Pricing Guidance of 10-year US Treasury plus 120 basis points. Strong investor interest, evidenced by an order book exceeding $4.4 billion, allowed the government to tighten the final pricing by 40 basis points to 10-year US Treasury plus 80 basis points.
The global investor base for the issuance included 57.8% participation from MENA, 35% from the UK and continental Europe, and 7.2% from Asia and other regions. Citi and Emirates NBD Capital served as Structuring Advisors, with Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, RAKBANK, and Standard Chartered Bank acting as Joint Global Coordinators.