Gulf News

Ras Al Khaimah: The Ras Al Khaimah Government on Wednesday completed the formal documentation for its landmark $400 million (Dh1.46 billion) sukuk (Islamic bond) issue, with Standard Chartered Bank Standard Chartered Bank , BNP Paribas BNP Paribas and Liquidity House acting as joint bookrunners.

This issuance is both the first dollar sukuk issued by a sovereign and by an emirate in the UAE.

This is the second issuance under the RAK Government's $2 billion sukuk programme. The first issuance in May 2008 was worth Dh1 billion in which Standard Chartered Standard Chartered acted as sole arranger and bookrunner.

At the signing ceremony, Shaikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, said: "We are extremely pleased with the strong investor response to the sukuk issue which serves as an indication of the RAK Government's continued credibility with the international investor community.

"I would like to thank both Standard Chartered Bank Standard Chartered Bank and BNP Paribas BNP Paribas for the integral role they played towards the success of this well-distributed issue which will establish a liquid benchmark for the government in the dollar markets."

Shayne Nelson, Regional Chief Executive, Standard Chartered Standard Chartered , Mena, said: "The sukuk is a key milestone not only in the continued development of RAK, but also in the evolution of Islamic banking.

The roadshow began on July 6 in the Middle East and ended on July 20 in Europe. Based on the strong investor response, the RAK Government announced plans for a second issuance under its sukuk programme. The official price guidance of 8 per cent to 8.25 per cent for a target issue size of $300 million to $500 million was released on July 14.

The order book grew rapidly to over $1.65 billion with over 120 investors despite being open for only 24 hours in the Middle East and Asia and only six hours in Europe.

The transaction received strong interest with final allocations from the Middle East being 47 per cent, 34 per cent in Asia and 19 per cent in Europe.

A focused marketing strategy and effective communication of the Government's credit story during the road show, enabled the $400 million five-year sukuk issue to be priced at the lowest end of the official price guidance.

By Nasouh Nazzal, Staff Reporter

© Gulf News 2009. All rights reserved.

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