Bank of Sharjah succeeds in issuing sukuks worth $550 million for the International Investment Union

Sharjah, 9 November / WAM / The Bank of Sharjah announced its successful participation, as joint lead manager and book-runner, in the process of issuing unsecured sukuks worth US$550 for a period of five years, for the benefit of Al Ittihad International Investment Company, in cooperation with a group of prominent international and regional banks.

This issuance attracted great interest from investors, as the subscription was covered more than four times, bringing the volume of demand to about two billion US dollars.

This strong demand reflects the confidence of regional and international investors in the creditworthiness of Al Ittihad International Investment Company and its well-established business model.

The recent raising of its credit rating by Fitch and Standard & Poor’s from “B+” to “BB-” also contributed to enhancing investor confidence and supporting the success of the issuance.

In light of the large demand from investors, the issuer was able to reduce the pricing margin by 50 basis points, to settle at 7.375%, while increasing the deal size to US$550 million, which reflects the strength of demand and the quality of the issue.

Mohammed Khediri, CEO of Bank of Sharjah, said: “This issuance represents a new important step in the financing journey of Al Ittihad International Investment Company, after the success it achieved in its first sukuk issuance worth $350 million in 2023. The company was able to increase the size of the issuance, significantly reduce the rate of return, and attract broad international participation, as 65% of the issuance was allocated to investors from outside the Middle East and North Africa region.”

He added, “Bank of Sharjah’s participation in this issuance embodies our continued commitment to supporting Emirati companies in meeting their financing needs through innovative, thoughtful solutions in the capital markets. We are proud to contribute to deals that enhance the depth of the market and support the UAE’s position as a leading financial center in the region.”

For his part, Damian White, Head of Treasury at Bank of Sharjah, expressed his happiness with the strong demand received for the issuance of the sukuks by Al Ittihad International Investment Company. The success of the deal reflects the effectiveness of the distribution strategy, the strength of the issuer’s credit foundations, and investors’ continued confidence in the strength and diversity of the UAE economy, and its promising future prospects.

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