RAK plans to sell $2bn sukuk

Ras Al Khaimah (RAK) Government plans to sell up to $2 billion (Dh7.3bn) of sukuk to fund infrastructure projects, a person with direct knowledge said.

The government has appointed Standard Chartered Bank to be sole lead-manager and book-runner for the issue. The first group of bonds will be at least of benchmark size, typically $500 million, said the person, who did not want to be identified. Meetings to market the five-year bonds, or sukuk, start this week.

The inaugural issue is expected to be denominated in dirham and will be the first rated sovereign issuance in dirham. Other tranches could be sold in dollars. The transaction will be for a tenor of five years.

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