Standard Chartered Bank has successfully closed a landmark Dh1 billion ($272 million) Sukuk issue for the Government of Ras Al Khaimah, acting through the Investment & Development Office.

The first tranche issued off the Government’s $2 billion Sukuk Programme, was 1.5 times oversubscribed at the time of pricing with a total book size of over Dh1.5 billion.

Gilles Franck, head of Capital Markets Mepa, Standard Chartered Bank and Ras Al Khaimah crown prince and deputy ruler Sheikh Saud Bin Saqr Al Qasimi signed an agreement in this regard.

About 24 per cent of the issue was placed outside the GCC for what was the first Ijara Sukuk programme and first Sukuk facility to be established by a sovereign from the region.

The programme has received a rating of “A” by both Standard & Poor’s and Fitch Ratings. The transaction will serve as a benchmark for future Dirham issuances and further the development of the dirham yield curve.

The Investment and Development Office (IDO) of the Government of Ras Al Khaimah was established in 2004 by an Emiri Decree with the aim of identifying new investment opportunities and facilitating the investment process to allow investors to reach their goals and achieve success in their businesses in Ras Al Khaimah.

The IDO showcases the unique features of Ras Al Khaimah to the prospective investors and ensures that a viable business venture is set up seamlessly and efficiently and with the critical data and analysis needed to ensure stability and prosperity for investments.-TradeArabia News Service