Dentons Advises RAK Capital on US$500 Million Sukuk Issuance

Dentons has advised The Government of Ras Al Khaimah, acting through the Investment & Development Office, on its listing of RAK Capital’s US$2 billion Trust Certificate Issuance Programme on NASDAQ Dubai, and the subsequent US$500 million sukuk issue under the Programme.

The 5 year, fixed rate Reg S sukuk (rated “A” by Fitch and Standard & Poor’s) used an ijara-based structure. Having conducted road shows in the United Arab Emirates, Kuala Lumpur, Singapore and London, high investor demand meant that the issue was heavily oversubscribed.

This instruction follows on from Dentons’ involvement with RAK Capital’s combined US$400 million sukuk issue and related liability management exercise in late 2010, a deal which won Most Innovative Deal of the Year at the 2010 Islamic Finance News Awards.

Matthew Sapte, partner in Dentons’ Banking and Finance practice in London, said: “We are delighted to have had the opportunity to continue our strong working relationship with the Investment & Development Office and assist on this benchmark sukuk issue. Thanks to the hard work of all those involved, and an exceedingly positive market response, the Government was able to achieve excellent pricing for this sukuk issue.”

The Dentons team was led by Matthew Sapte and Paul Jarvis, partner in the firm’s Abu Dhabi office, assisted by associates Helen Munro (Abu Dhabi) and Laura Cansdale (London).

Related Posts: