RAKBANK Issues GCC’s First Public Social Bond, Raising $600 Million to Support SMEs and Healthcare

• Historic Issuance: RAKBANK’s social bond marks the GCC’s first public issuance, highlighting strong demand and investor confidence.
• Economic & Social Impact: Proceeds will support MSMEs and healthcare, aligning with UAE’s sustainable development goals.
• Strategic Growth: Bond issuance reinforces RAKBANK’s commitment to ESG integration and long-term financial growth.

RAKBANK Issues GCC’s First Social Bond, Supporting ESG Goals

Historic Issuance

RAKBANK has successfully issued a 5-year Euro Medium-Term Note (EMTN) Bond under its Social Finance Framework. Oversubscribed by more than 3X, the issue was upsized to USD 600MM, with tightened pricing to USTs + 135bps. The bond features a coupon of 5.375% and 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.“

Economic & Social Impact

The Social Finance Framework by RAKBANK ensures that funds raised are directed towards impactful initiatives, particularly benefiting MSME (Micro, Small, and Medium Enterprises) customers and enhancing healthcare provisions. This aligns with the UAE’s commitment to Sustainable Development Goals (SDGs).

“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,” Ahmed added.

Related Article: Deutsche Bank Announces the Issuance of its Inaugural €500 Million Social Bond

Strategic Growth

The social bond issuance underscores RAKBANK’s dedication to ESG principles, positioning it as a leader in sustainable finance within the region. By supporting MSMEs and healthcare, the bank contributes to broader economic stability and social well-being.

“This initiative aligns with the UAE’s vision for sustainable development and economic diversification, enhancing our role in the community and economy,” Ahmed concluded.