The bank played the role of joint lead manager for the issuance, and also assumed the role of bookrunner, in issuing sukuks worth $750 million with a term of 10.5 years, along with a group of other international and regional banks.
This release has attracted great attention before InvestorsThe value of registered orders exceeded the size of the offering several times, reaching $2.6 billion, which reflects great confidence in the solidity and durability of the Sharjah Government’s fundamentals and the strength of its credit standing in the market.
At the outset of the issuance, an initial indicative price was set at a spread of 175 basis points over the yield Bonds The US Treasury, then the final price settled at a level of 140 points above the US standard in the end.
The tightening of pricing conditions reflected the strong demand from investors around the world, as the percentage of requests from investment entities active in financial markets outside the Middle East and North Africa region reached about 34 percent of the total request.
Mohammed Khediri, CEO of the Bank of Sharjah, said: “This pioneering issuance of Sharjah Government Sukuks reflects our deep commitment to harnessing our capabilities to support the development process in the Emirate of Sharjah and consolidate its financial position.”
He added that the strong interest on the part of both local and international investors represents evidence of confidence in the economic stability and financial discipline enjoyed by the Emirate of Sharjah, noting: “Based on that confidence, we were able to cooperate with distinguished partners to reach the structuring and pricing of the sukuks on favorable terms.” “While ensuring that the needs of a diverse investor base are met in a way that enhances the emirate’s reputation in global capital markets.”
Khediri stressed: “Commitment Bank of Sharjah By providing financial solutions that contribute to advancing economic development, as such issuances constitute an important step to enhance our support for the efforts of the Sharjah government, and we are keen to continue contributing to its endeavors to enable the emirate to reach its growth and development goals.”
For his part, Damian White, Head of Treasury at Bank of Sharjah, expressed his happiness with the strong demand received for the issuance. Instruments This issuance constitutes an important achievement in our efforts to enhance our financial cooperation with the Government of Sharjah.
