RAKBANK issues first ever public Social Bond in the GCC
RAKBANK is pleased to announce the successful issuance of its 5-year Euro Medium-Term Note (EMTN) Bond under its Social Finance Framework. Given the very strong demand and investor interest, it was oversubscribed by more than 3X allowing us to upsize the issue to USD 600MM and tighten the pricing by 35bps to USTs + 135bps. The bond will have a coupon of 5.375% with a yield to maturity of 5.439%.
Raheel Ahmed, Group Chief Executive Officer of RAKBANK, stated, “This is an important milestone for RAKBANK and supports our aspiration of integrating ESG into our core business strategy for long-term financial growth. It also reinforces our commitment to supporting “We the UAE Vision 2031”, through GDP growth, job creation, and aligning with UBF’s 2030 sustainable finance pledge.
As a leading SME bank, we already play a crucial role in supporting the success and growth of more than 86,000 SME customers that act as a catalyst for the economy through employment generation. The issuance allows us to further our efforts in this space”.
The Social Finance Framework established by the Bank outlines the purposes and manner in which funds raised through these bonds will be utilized, including the support to MSME (Micro, Small, and Medium Enterprises) customers and enhancing the provision of healthcare within society. This initiative aligns with the UAE’s commitment to the SDG’s goals (Sustainable Development Goals).
Last Updated on 5 months by News Desk 2
