Sharjah Islamic Bank (SIB) successfully concluded a $500 million sukuk issuance in the international capital markets on Wednesday. The offering garnered significant interest from global investors, with orders reaching a high of $1.5 billion, indicating an oversubscription of over 3 times. The sukuk, with a 5-year maturity, was issued at a spread of 105 bps over 5-year US Treasuries and will yield a profit rate of 5.25% annually, maturing on July 3, 2029. The bank managed to reduce the spread by 35 bps from the initial price thoughts of 140 bps due to robust demand from international and Middle Eastern investors. Mohamed Abdalla, CEO of Sharjah Islamic Bank, expressed gratitude to all investors for their confidence in the bank and their investment in the sukuk, noting that this marks the bank's ninth venture into the international capital markets since its first sukuk issuance in 2006. Ahmed Saad, Deputy CEO, emphasized the resilience of the UAE banking sector and SIB, highlighting the diverse allocation of the sukuk, with 80% going to the Middle East, 13% to Asia, and 7% to Europe. Despite market volatility, the strong interest in the Middle Eastern credit market, particularly in SIB, was noted. The bank was advised by ENBD Capital, HSBC, and Standard Chartered as Joint Global Coordinators, with additional support from 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 as Bookrunners.
Text: Lara Palmer
27.06.2024
SIB's Sukuk Oversubscribed 3x, Attracting $1.5B in Orders; Maturity Set for 2029