RAKBANK raises $600M in five-year bond, books top $1.2B
What's the deal? The National Bank of Ras Al Khaimah (RAKBANKDealroom has a profile for this one. Try Dealroom →) has raised $600 million through five-year senior unsecured notes.
The UAE lender priced the benchmark-sized issue at a 5.375% coupon, yielding 5.413% at a reoffer price of 99.835.
Demand was strong: order books exceeded $1.2 billion, more than double the amount raised.
Why now? The bonds priced at a spread of 125 basis points over US Treasuries, tightening from initial guidance around 155 basis points.
That narrowing signals healthy investor appetite, letting RAKBANK lock in funding at a lower cost.
The notes will be issued under the bank's EMTN programme and listed on Euronext Dublin. They are expected to be rated Baa1 by MoodyDealroom has a profile for this one. Try Dealroom →'s and BBB+ by FitchDealroom has a profile for this one. Try Dealroom →.
A deep bookrunner syndicate backed the deal: Abu Dhabi Commercial BankDealroom has a profile for this one. Try Dealroom →, Arab Banking Corporation, CitiDealroom has a profile for this one. Try Dealroom →, Emirates NBD Capital, First Abu Dhabi BankDealroom has a profile for this one. Try Dealroom →, ICBCDealroom has a profile for this one. Try Dealroom →, ING, JPMorganDealroom has a profile for this one. Try Dealroom →, MashreqDealroom has a profile for this one. Try Dealroom →, Standard CharteredDealroom has a profile for this one. Try Dealroom →, and RAKBANK itself.
The signal: The oversubscribed sale, which drew a syndicate spanning regional heavyweights like First Abu Dhabi BankDealroom has a profile for this one. Try Dealroom → and Abu Dhabi Commercial BankDealroom has a profile for this one. Try Dealroom → alongside global names such as CitiDealroom has a profile for this one. Try Dealroom →, JPMorganDealroom has a profile for this one. Try Dealroom →, and Standard CharteredDealroom has a profile for this one. Try Dealroom →, underscores continued international appetite for UAE bank debt. For a mature lender like RAKBANK, locking in five-year funding 30 basis points inside initial guidance signals the pricing power Gulf issuers now command with global investors.
Read more: Zawya
