RAKBANK launches $500m debut bond issue

June 17, 2014 - 1:31:47 pm

ABU DHABI: United Arab Emirates-based lender National Bank of Ras Al Khaimah (RAKBANK) launched its debut $500 million, five-year debut bond on Tuesday after tightening the pricing, a document from lead managers said.

Tightened pricing for the bond was given at 160 basis points over mid-swaps, against initial price thoughts in the area of 170 bps on Monday.

RAKBANK, rated BBB-plus by Fitch, attracted books of over $1.5 billion for its offer, the document said.

The bank has chosen National Bank of Abu Dhabi and Standard Chartered to arrange the bond sale.

The UAE's sixth-largest lender by market value joins others from the Gulf Arab state in tapping bond markets at a time when borrowing costs have tightened thanks to increased interest from foreign investors and turmoil in other emerging markets.

The government of Ras al-Khaimah, one of the seven emirates which make up the UAE, owns just over 50 percent of RAKBANK.  (Reuters)