Ras Al-Khaimah Launches $1bn 10-yr Sukuk -Leads

The emirate of Ras al-Khaimah has launched a $1 billion, 10-year sukuk that will price later on Tuesday, a document from lead arrangers showed.

The transaction was set to price at a spread of 110 bps over midswaps, which is at the tighter end of a final guidance of 115 bps plus/minus 5 bps over midswaps. This is lower than initial pricing guidance of around 125 bps over midswaps given earlier on Tuesday.

The emirate, which is issuing sukuk with an ijara structure, has garnered orders worth about $2.5 billion, an earlier document showed.

Ras al-Khaimah, rated A by Standard and Poor’s and Fitch, has appointed Al Hilal Bank, Citigroup, J.P.Morgan and National Bank of Abu Dhabi for the sukuk sale.

Ras al-Khaimah is one of seven emirates that make up the United Arab Emirates