UAE’s Rakbank Plans Up to $500 Million Bond Issue

Plan Gets Approval from Lender’s Latest General Assembly Meeting

The National Bank of Ras Al Khaimah (Rakbank) is set to issue up to $500 million in bonds to bolster its capital adequacy ratio, as per a bourse filing on Friday. The decision received approval during the bank’s General Assembly Meeting on Thursday.

The approved plan allows for the issuance of non-convertible conventional bonds qualifying as Tier 1 capital for up to $500 million and/or Tier 2 capital for up to $250 million, according to the filing with the Abu Dhabi Securities Exchange (ADX).

The bank, primarily owned by the government of Ras Al Khaimah, emphasized that the bond issuance aims to strengthen its capital adequacy ratio. This move is expected to enhance the bank's financial stability and support its growth objectives.

Rakbank reported a significant net profit increase of 27.5%, reaching AED 574.2 million ($156.3 million) in the first quarter of the year. The bank's strong liquidity position was highlighted by an eligible liquid asset ratio of 13.5% and an advances to stable resources ratio of 78.7% as of the first quarter.

This strategic financial move by Rakbank demonstrates its commitment to maintaining robust capital reserves, thereby ensuring continued confidence among investors and stakeholders.

*Source: Zawya