The Ras Al Khaimah Government has appointed Standard Chartered bank as the sole lead manager and sole bookrunner for its landmark Sukuk program.

Standard Chartered had arranged the programme for the Government and would also manage the inaugural Sukuk issuance.

The Sukuk programme follows the government’s initiative to obtain credit ratings earlier this year through rating advisory services by Standard Chartered Bank in which both Fitch and Standard and Poors (S&P) provided the RAK government with an “A” level rating, said a bank official. 

The inaugural issuance under the programme is expected to be denominated in dirhams, and will be the first rated sovereign issuance in dirhams.  The transaction will be for a tenor of 5 years, with investor meetings scheduled to start the week of May 5, 2008.

Crown prince and deputy ruler of Ras Al-Khaimah Sheikh Saud Bin Saqr Al Qasimi signed the programme agreement with Standard Chartered Bank chief executive officer (Mena) Shayne Nelson and regional head of Capital Markets, Gilles Franck.

'The arrangement of the Sukuk Programme is in line with the government's strategic vision of the progressive development of Ras Al Khaimah. The strong credit ratings from S&P and Fitch are also independent votes of confidence in the emirate's economic program and fiscal position,' said Adnan Al-Maimani, president of the Investment of Development Office.

Al Maimani lauded the SCB for facilitating the programme and for its role as the rating advisor.

Shayne Nelson said the partnership was testament of the confidence and deep understanding of RAK’s Government strategic vision and future plans.

'The sovereign ratings by S&P and Fitch further reaffirms the Government’s leadership, commitment and capabilities,' he added.

Gilles Franck said the Sukuk Programme was a milestone in the development of the AED capital markets.

'We are grateful the Government of RAK provided us the opportunity to work with it on the execution, starting with the ratings process and contribute to its success,” he added.-TradeArabia News Service