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 US$1 billion senior unsecured sukuk at a profit rate of [5.038%] on 5th March 2025.

The Government of Ras Al Khaimah tapped the international debt capital market after 10 years and the issuance of the sukuk was completed on 5th March 2025 under the Government of Ras Al Khaimah’s US$2 billion Trust Certificate Issuance Programme which was signed on 28th February 2025 (the Programme).

The sukuk was issued under the Programme by RAK Capital, a special purpose vehicle affiliated with the Government of Ras Al Khaimah.

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 Government of Ras Al Khaimah.

The sukuk is consistent with the most recent Shari’a developments, as promulgated by the UAE Central Bank Higher Shari’a 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 Government of Ras Al Khaimah has adhered to the most Shari’a-compliant structure.

The Government of Ras Al Khaimah announced the issuance on 3rd March 2025 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 5th March 2025 while listing the sukuk on the 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 US$4.4 billion enabled the Government of Ras Al Khaimah 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% from MENA, 35% from the UK/continental Europe and 7.2% from Asia/Others.

Citi and Emirates NBD Capital acted as Structuring Advisors, 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 for the Government of Ras Al Khaimah 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.”