RAK pondering coupon of 8-8.5% on 5-year sukuk

Ras Al Khaimah may offer a coupon of 8 per cent to 8.5 per cent on its five-year Islamic bond, a banker familiar with the transaction said.

The emirate plans to sell a 'benchmark size' issue, the banker who didn't want to be identified before the deal is completed said. Benchmark issues are usually $500 million (Dh1.8 billion) or more. Standard Chartered and BNP Paribas are managing the sale.

Ras Al Khaimah's government sold Dh1 billion ($272 million) of Islamic bonds in its first rated sale of the securities in May last year. The five-year floating-rate sukuk was priced to yield 1.15 percentage points more than the three- month Emirates interbank offered rate, data compiled by Bloomberg show.