RakBank bucks trend on EMTN

Seeks to make early repurchase of debt notes. (EB FILE)

Even as several banks are breaking their heads to rein in their unhealthy loans-to-deposits ratio and seeking ways to raise long-term fund base, Ras Al Khaimah-based RAKBank has gone ahead to retire a portion of its euro medium-term note (EMTN) programme debts with an advance repurchase of Dh217 million worth notes, the banks financial statements reveal.

The bank says it will consider further repurchase to reduce liability on maturity given the current state of market. RAKBank has booked a profit of Dh4.59 million from the repurchase of Dh217m debt certificates.

Most banks have EMTN programmes coming up for repayments in the coming months and years, and since the market has dried up globally following the recession, raising fresh funds has become tough. Banks are facing the challenge of buying back those notes issued by them in the last few years as they mature for repayment.

Talking to Emirates Business, the bank's Chief Executive, Graham Honeybill, said: "We are comfortable with our liquidity position and hence we will keep our options open to repurchase further notes when they come for trading." P8
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