Sharjah Islamic Bank Successfully Places $500m Five-Year Sukuk
The emirate's leading Islamic financial institution has completed a landmark capital markets offering, drawing exceptional investor interest and reinforcing its standing among international sukuk issuers.
Sharjah Islamic Bank has successfully concluded the issuance of a US$500 million five-year Sukuk, attracting remarkable investor appetite in international capital markets. The offering generated an order book totalling US$1.3 billion, representing a subscription ratio of 2.6 times the issue size and underscoring robust confidence in the bank’s credentials and strategic direction.
The Sukuk was priced at a final yield of 5.85 per cent, with a spread of 105 basis points over five-year US Treasuries. This represents the bank’s thirteenth sukuk issuance since entering the capital markets in 2006, demonstrating sustained excellence in executing successful offerings across varying market conditions.
Mohamed Abdalla, Chief Executive Officer of Sharjah Islamic Bank, emphasised that the successful issuance reflects the confidence investors hold in the bank’s financial performance and long-term strategic objectives. He noted that capital market activities form an integral component of the bank’s funding strategy, whilst supporting its financing ambitions and strengthening its capacity to deliver sustainable growth.
“We continue to build on SIB’s presence in international capital markets, supported by solid financial fundamentals and a disciplined approach to balance sheet and liquidity management,” Mr Abdalla stated. “This strengthens our ability to achieve sustainable growth and maintain our position as a trusted issuer in international Sukuk markets.”
Ahmed Saad, Deputy Chief Executive Officer, highlighted that the substantial order book confirms investors’ continued confidence in the bank’s execution capabilities within international capital markets. The successful offering enhances the bank’s operational flexibility in managing funding requirements and broadening its liquidity sources, thereby supporting its ambitious long-term growth trajectory.
Source: WAM