Bank Of Sharjah Co-Leads $550 Million Sukuk For Ittihad International Investment LLC Amid Strong Investor Demand

Bank of Sharjah has played a pivotal role as Joint Lead Manager and Bookrunner in the issuance of a US$550 million five-year senior unsecured Sukuk for Ittihad International Investment LLC. This effort was in collaboration with other international and regional banks. The transaction attracted significant investor interest, with the order book being oversubscribed more than four times, reaching US$2 billion.

The overwhelming response from investors highlights their confidence in Ittihad International’s creditworthiness and robust business model. The Group's recent credit rating upgrade by Fitch and S&P from "B+" to "BB-" further enhanced market interest, reflecting its strong financial performance and solid fundamentals.

Initially marketed as a benchmark-sized deal, the strong investor demand allowed the issuer to tighten pricing by 50 basis points to 7.375 percent from the initial guidance. Consequently, the deal size was increased to US$550 million. This adjustment underscores the high level of interest from both regional and international investors.

Mohamed Khadiri, CEO of Bank of Sharjah, remarked on this achievement: "Following Ittihad International’s successful debut Sukuk issuance of USD 350 million in 2023, this new transaction marks another significant achievement for the Group. The company was able to upsize the issuance, achieve a notably lower coupon, and attract strong international participation, with 65% of allocations made to investors outside the MENA region."

Khadiri also noted that Bank of Sharjah's involvement in this transaction reflects its ongoing commitment to supporting UAE corporates in achieving their funding objectives through well-structured financing and capital market solutions. He expressed pride in contributing to initiatives that enhance market access and reinforce the UAE’s position as a leading financial hub.

Damian White, Chief Treasury Officer at Bank of Sharjah, shared his thoughts on the successful outcome: "We are delighted to have been part of Ittihad International’s Sukuk issuance. The outcome highlights the success of a well-executed distribution strategy, the issuer’s strengthened credit fundamentals, and the continued investor confidence in the UAE’s resilient and diversified economic outlook."

This transaction not only demonstrates Ittihad International's ability to attract substantial international investment but also showcases Bank of Sharjah's expertise in facilitating significant financial deals within the region. The successful issuance reinforces confidence in both entities' capabilities within global markets.

With inputs from WAM