On Wednesday, the $500 million sukuk was successfully closed by Sharjah Islamic Bank (SIB) on the global capital markets. International investors responded incredibly well to the issuance; orders reached a peak of $1.5 billion, which is more than three times over subscription.
The five-year-old sukuk was priced at 105 basis points plus five-year US Treasuries. The Sukuk will mature on July 3, 2029, with an annual profit rate of 5.25%. The bank’s strong demand from investors in the Middle East and abroad allowed it to successfully tighten by 35 basis points after announcing IPTs at 140 basis points.
The vice chief executive officer, Ahmed Saad, emphasised the advantages of the SIB in particular and the UAE banking system. “A major focus of the issue was the Sukuk’s wide geographic distribution. We were able to distribute in a varied manner, with the Middle East receiving 80% and Asia and Europe receiving 13% and 7%, respectively. Notwithstanding the unstable market environment, we were encouraged by the tremendous interest in the Middle Eastern credit story in general and Sharjah Islamic Bank in particular,” he stated.
ABD 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 served as book runners for the SIB, while ENBD Capital, HSBC, and Standard Chartered served as Joint Global Coordinators.
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