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A sign displaying ATM prepaid cards is seen at a National Bank of Ras Al Khaimah RAK bank branch at Dubai Marina in Dubai May 12, 2013. Ahmed Jadallah, Reuters
The National Bank of Ras Al Khaimah (Rakbank) is looking to sell up to $500 million in bonds to boost its capital adequacy ratio, according to a bourse filing on Friday.
The lender’s General Assembly Meeting approved on Thursday the issuance of non-convertible conventional bonds that qualify as Tier 1 capital for up to $500 million and/or Tier 2 capital for up to $250 million, as the case may be, stated the filing with the Abu Dhabi Securities Exchange (ADX).
“[The issue is] for the purposes of strengthening the bank’s capital adequacy ratio,” the lender, majority owned by the government of Ras Al Khaimah, said.
Rakbank saw its net profit jump by 27.5% to AED 574.2 million ($156.3 million) during the first quarter of the year.
The bank said its liquidity position remained strong, as reflected by an eligible liquid asset ratio of 13.5% and advances to stable resources ratio of 78.7% as of the first quarter.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
