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Media iN / Ras Al Khaimah 03-04-2019 / WAM
National Bank of Ras Al Khaimah has announced the completion of a five-year bond issue worth $ 500 million.
The bank said in a statement posted on the Abu Dhabi Securities Exchange website that the single bond would provide a profit rate of 4.125% or 185 basis points above the average 5-year fixed and variable rate swap rates.
Peter Engeland, chief executive of the bank, said the bond issue would support long-term financing requirements, which in turn would support the bank’s digitization and diversification strategy.
The issue was met with a strong demand from investors, resulting in an oversubscription of about $ 2 billion, about four times the size of the issue.
The bank explained that this turnout helped it pricing the issue at 185 basis points above the average fixed and variable interest rate swap rate in the dollar, which is only 25 basis points lower than the benchmark rate of 210 basis points above the average fixed and variable rate swap rates in dollars.
