Bank Of Sharjah's $500 Million Bond Issuance Oversubscribed, Signals Investor Confidence

Bank of Sharjah has successfully issued a US$500 million senior unsecured bond in the international markets. The issuance saw significant interest from global investors, with orders reaching US$1.4 billion, nearly three times the subscription amount.

The bonds have a five-year maturity from the issuance date and offer an annual coupon rate of 5.25%. This new issuance highlights the bank's capability to secure favourable terms in capital markets.

Following extensive marketing efforts, including global investor calls and roadshows in Dubai and London, the bank managed to tighten the pricing by 25 basis points from the initial price talk. This was due to strong demand from both international and regional investors.

Commenting on this achievement, Mohamed Khadiri, CEO of Bank of Sharjah, stated, "Despite a period of heightened volatility, driven by various economic and geopolitical factors, we were able to secure significant investor interest, reflecting strong confidence in our new strategy and the bank's financial stability and growth."

Damian White, Head of Treasury at Bank of Sharjah, remarked, "This new bond issue marks an important milestone in the transformation of Bank of Sharjah. We set out with the goal of accessing a diverse group of investors whilst also ensuring that the pricing reflected the turnaround in the bank's performance under its new strategy. The final pricing compared very favourably to that of past deals and cements a solid base for future issuances."

The positive reception from international investors is a testament to the bank's effective strategy and market positioning. It also sets a precedent for future issuances as Bank of Sharjah continues its growth trajectory.