RAS AL KHAIMAH: Ras Al Khaimah is planning a dollar-denominated Islamic bond sale, its first in almost three years, according to three people familiar with the matter.
Al Hilal Bank, National Bank of Abu Dhabi, Citigroup, Mashreqbank and Standard Chartered will arrange investor meetings from Oct.2, said the people, who asked not to be identified because the information isn’t public. The bond will be part of Ras Al Khaimah’s $2 billion sukuk programme.
Borrowers are rushing to tap debt markets after the US Federal Reserve surprised investors with a Sept.18 decision to maintain $85 billion per month of bond purchases. The average yield on sukuk from the Gulf Cooperation Council fell 14 basis points since the Fed’s announcement. Ras Al Khaimah hasn’t issued dollar-denominated debt since December 2010.
“The Fed has given them a little window,” Aliasgar Tambawala, the Dubai-based manager of fixed income at Mashreq Capital DIFC Ltd., said on Monday . “For people who are thinking of issuing, or who need to meet a maturity next year, this is probably the best time. Next year could see higher rates and higher yields.”