Sharjah Islamic Bank (SIB) successfully closed a $500 million sukuk in the international capital markets on Wednesday, with the issuance receiving a tremendous response from international investors. The sukuk has a maturity of 5 years and was priced at a spread of 105 bps + 5 years US Treasuries, with a profit rate of 5.25% per annum and a maturity date of 3rd July 2029. The bank was able to tighten by 35 bps from the initially announced IPTs due to strong demand from International and Middle East investors.
Mohamed Abdalla, CEO of Sharjah Islamic Bank, expressed gratitude to all the investors for their confidence in the bank and for investing in the sukuk. He highlighted that this is the bank’s ninth foray into the international capital markets, reflecting the strength of the bank under prudent management. Ahmed Saad, the Deputy CEO, emphasized the strengths of the UAE Banking system and SIB in particular, highlighting the diverse geographical distribution of the sukuk issuance with the Middle East receiving 80%, Asia receiving 13%, and Europe receiving 7%.
The interest in the Middle Eastern credit story and Sharjah Islamic Bank was strong despite the volatile market background. The SIB received advice from ENBD Capital, HSBC, and Standard Chartered as Joint Global Coordinators, with other banks acting as Bookrunners. The successful issuance of the sukuk demonstrates the confidence of international investors in the bank and the stability of the UAE banking system.
To stay up to date with the latest news, readers can follow KT on WhatsApp Channels. The successful issuance of the $500 million sukuk by Sharjah Islamic Bank showcases the bank’s strong presence in the international capital markets and its ability to attract investors. With a track record of successful issuances and prudent management, the bank continues to maintain its ratings and pricing in the market.
Sharjah Islamic Bank’s ability to tighten the pricing of the sukuk due to overwhelming demand reflects the bank’s strong reputation and investor confidence. The diverse geographical distribution of the issuance further demonstrates the bank’s appeal to investors across different regions. Overall, the successful closure of the sukuk highlights Sharjah Islamic Bank’s continued growth and stability in the global market.
In conclusion, the successful issuance of the $500 million sukuk by Sharjah Islamic Bank is a testament to the bank’s strong position in the international capital markets. With a history of successful transactions and prudent management, the bank continues to attract investors and maintain its ratings. The diverse geographical distribution of the sukuk further emphasizes the bank’s appeal to investors across different regions. Moving forward, Sharjah Islamic Bank is well-positioned for future growth and success in the global financial market.
