RAKBANK Completes Inaugural Tier 2 Issuance of USD 250 Million
RAKBANK has successfully completed its first Tier 2 security issuance, raising USD 250 million, marking a significant milestone in the bank's financial journey. The issuance comes with a maturity period of 10.25 years and a non-call period of 5.25 years (10.25NC5.25), carrying an attractive coupon rate of 5.875%.
The Tier 2 issuance was met with exceptional investor demand, being oversubscribed by four times, with peak orders surpassing USD 1 billion. This overwhelming response allowed RAKBANK to tighten the pricing by 42.5 basis points, showcasing the confidence global and regional investors have in the bank’s financial stability and future growth prospects.
This strategic move enhances RAKBANK’s capital adequacy, bolstering its balance sheet as it continues to pursue expansion and new growth opportunities in the UAE and beyond. By strengthening its capital reserves, the bank is better positioned to navigate the evolving financial landscape and support its long-term goals.
The successful issuance reflects RAKBANK’s robust financial performance and its reputation as a trusted institution within the UAE’s banking sector. As the demand far exceeded expectations, this issuance highlights the growing investor interest in RAKBANK’s offerings and its strong foothold in the regional financial markets.
Commenting on the issuance, RAKBANK executives noted that the successful outcome reinforces the bank’s commitment to maintaining a solid capital base and reflects investor trust in its operational and financial strategies. The Tier 2 issuance not only enhances the bank's capital position but also provides a strong foundation for future growth and investment.
RAKBANK’s first Tier 2 issuance underscores its continued focus on sustainable financial practices and its role in contributing to the overall economic development of the UAE.
