DUBAI, March 3 (Reuters) - Ras Al Khaimah, one of seven city-states of the United Arab Emirates and likely location of its first casino, has mandated banks to arrange investor meetings ahead of issuing sukuk, or an Islamic bond, issue, a document showed on Monday.
The government plans to issue 10-year benchmark-sized sukuk following the meetings, which begin on March 3, dependent on market conditions, the document from one of the arranging banks said.
Benchmark-sized is generally understood to mean at least $500 million.
Citi, Emirates NBD Capital, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, the National Bank of Ras Al Khaimah and Standard Chartered are mandated joint global coordinators and lead managers.
Proceeds from the planned issue will be used for general government and budgetary purposes. The government has gross outstanding debt of 3.67 billion dirhams ($999.37 million), a sukuk due to mature in 2025, a bond prospectus showed.
Hotel and casino operator Wynn Resorts WYNN.O is developing a luxury resort, the Wynn Al Marjan Island in the city-state, and was last year awarded the UAE's first commercial gaming operator's licence.
The resort is expected to open in the first quarter of 2027.
The UAE, which wants to diversify its economy away from hydrocarbons, in 2023 established a new gaming regulator, ending years of speculation on whether the country would allow gambling - illegal across the conservative Gulf region.
Ras Al Khaimah's government had, at the end of last year, contributed 2.1 billion dirhams ($571.83 million) as equity to the Wynn joint venture, according to the prospectus.
It expects to add 1.4 billion dirhams and 1.6 billion dirhams in 2025 and 2026, respectively, and estimates an additional 8.8 billion dirhams will be raised through debt financing.
The UAE's bigger emirates include Dubai and Abu Dhabi, which have both accelerated efforts to develop sectors such as tourism, manufacturing and financial services.
($1 = 3.6723 UAE dirham)
(Reporting by Abinaya Vijayaraghavan and Yousef Saba; Editing by Rachna Uppal)
((Abinaya.V@thomsonreuters.com;))
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