Bank of Sharjah successfully completes the issuance of sukuks worth $750 million to the emirate’s government
Sharjah, 19 November / WAM / The Bank of Sharjah announced that it has played the role of joint lead manager and bookrunner in the successful issuance of Sharjah Government Sukuks worth US$750 million with a 10.5-year term, denominated in US dollars, in cooperation with a number of prestigious regional and international banks.
The issuance was widely received by global investors, with subscription requests exceeding two billion US dollars, reflecting the firm confidence in the creditworthiness of the Sharjah government and the stable economic prospects of the emirate.
The issuance witnessed a qualitative narrowing in the pricing margin, as it decreased from 145 basis points above US Treasury yields in the initial guidance to 110 basis points at the final pricing, in a clear indication of the strength of demand and the quality of implementation.
Mohammed Khediri, CEO of the Bank of Sharjah, said: “This issuance represents a prominent addition to the Sharjah government’s issuance record, and we at the Bank of Sharjah are proud to contribute to its success. Our role in this deal confirms our continued commitment to supporting the financial and economic development process in the emirate and enhancing its ability to implement its strategic projects in various sectors.”
He added that the large demand from regional and international investors highlights the growing confidence in the strength of Sharjah’s economy and its financial discipline, and that narrowing the margin by 35 basis points from the initial indicative price and achieving better pricing compared to last year’s issue reflects the strength of the emirate’s creditworthiness.
For his part, Damian White, Head of Treasury at the Bank of Sharjah, said: “This issuance reflects the advanced level of cooperation between the Bank of Sharjah and the Government of Sharjah, demonstrates the effectiveness of the efforts made in communicating with global investors, and confirms the bank’s ongoing efforts to ensure the provision of strong liquidity to support the emirate. Through this successful issuance, we meet the government’s financing needs and at the same time highlight the strength of the emirate’s economic fundamentals and its increasing attractiveness to international investors.”
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