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)