Posted by Neil King
Two recent yen bond issues by the emirate of Ras Al Khaimah have received a long-term 'A' rating from Fitch Ratings, it has been reported.
The bonds include a 10 billion yen bond which will pay annual interest of 3.77 per cent and mature in 2040 and a 5 billion yen bond at 3.58 per cent interest, maturing in 2030.
According to the Global Arab Network, the bond issues should be seen in the context of Ras Al Khaimah's current debt reduction and debt management plans.
"Fitch already regards such obligations as, in effect, sovereign, given the government's stated aim of centralising all the obligations of majority state-owned entities under the management of RAK's Investment and Development Office," it said.
It was also reported that the emirate's government is currently engaged in other debt management strategies to extend average debt maturity and lower its cost.
The news comes after the Dubai Economic Department recently hosted a delegation from Ras Al Khaimah's Department of Economic Development aimed at enhancing bilateral relations.