Sharjah Islamic Bank (SIB) has rolled out a mandate for a $500 million five-year sukuk, adhering strictly to Regulation S. The issuance boasts a fixed rate and senior unsecured attributes, aligning with common practices in the Islamic finance sector.
This development marks a significant move in the Middle East’s robust sukuk market, as regional banks seek diversified funding strategies.
The coordination for this issuance is with Emirates NBD Capital and Standard Chartered Bank, selected as joint global coordinators. A multinational syndicate of Ajman Bank, Bank ABC, Dubai Islamic Bank, First Abu Dhabi Bank, HSBC, Mashreq and The Islamic Corporation for the Development of the Private Sector are further bolstering the issuance as joint lead managers and joint bookrunners. These institutions play a crucial role in structuring and executing the deal to attract substantial investment from both domestic and international buyers.
Investors globally are being targeted through a series of calls and meetings, especially leveraging key financial centres like London. The outreach is part of a strategic effort to tap into global markets, highlighting the increasing internationalisation of Islamic finance instruments. The feature of the Al Wakala offering is significant, falling within the scope of SIB Sukuk Company III Limited’s $3 billion Trust Certificate Issuance Programme, showcasing the bank’s long-term vision and structured approach to its funding exercises.
Set for dual listing, the sukuk will find its place on Euronext Dublin and Nasdaq Dubai.
Sukuk, or Islamic bonds, differ from conventional bonds by adhering to Shariah principles, which prohibit interest. Instead, sukuk generate returns through profit-sharing or leasing arrangements. This framework attracts investors seeking Shariah-compliant investment products, adding diversity to the global financial ecosystem.
