The UAE’s Sharjah Islamic Bank (SIB) has successfully closed a $500 million sukuk in the international capital markets. The issuance attracted orders that peaked at 1.5 billion, being more than three times oversubscribed.
The sukuk has a maturity of 5 years and was priced at a spread of 105 bps + 5 years US Treasuries. It will bear a profit rate of 5.25% a year, maturing on 3rd July 2029.
Mohamed Abdalla, CEO of Sharjah Islamic Bank, thanked all the investors for their vote of confidence in the bank and for investing in the sukuk. He said “This is our ninth foray in the international capital markets, having issued a sukuk as early as 2006. The bank remains strong under prudent management and that reflects in the ratings and pricing of our transactions.”
The sukuk allocation had a diverse geographical distribution, with Middle Eastern investors getting 80%, while Asian and European investors received 13% and 7%, respectively.
Ahmed Saad, the Deputy CEO, added, “The interest in Middle Eastern credit story in general and Sharjah Islamic Bank in particular was very strong and heartening for us despite a volatile market background.”
The SIB was advised by ENBD Capital, HSBC and Standard Chartered as Joint Global Coordinators with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank ABC, Dubai Islamic Bank, ENBD Capital, First Abu Dhabi Bank, HSBC, Mashreq, QNB Capital and Standard Chartered Bank acting as Bookrunners.
