Bank Of Sharjah Successfully Issues $500 Million Green Sukuk For Omniyat Holdings Amid Strong Investor Demand

Bank of Sharjah has played a pivotal role as Joint Lead Manager and Bookrunner in the issuance of a $500 million Green Sukuk for Omniyat Holdings. This three-year financial instrument attracted significant interest, being oversubscribed 3.6 times. The strong demand from both international and regional investors highlights confidence in Omniyat’s creditworthiness, the UAE's real estate sector, and the country's stable economic outlook.

The initial marketing of this deal suggested a benchmark size with price guidance in the high 8.00 percent range. However, due to the robust order book, pricing was tightened to a final yield of 8.375 percent. Consequently, the issuance amount was increased to $500 million from an initially planned $400 million.

A notable aspect of this issuance is that 25 percent was allocated to investors from the UK, Europe, and US offshore markets. This allocation underscores strong international participation and interest in the offering.

Mohamed Khadiri, CEO of Bank of Sharjah, remarked on the significance of this Sukuk issuance as a strategic milestone for Omniyat's entry into Debt Capital Markets. He stated, "This Sukuk issuance marks a strategic milestone as its first foray into the Debt Capital Markets. Completing this landmark transaction amid volatile market conditions is a testament to Omniyat’s solid business fundamentals and the market’s confidence in its long-term vision."

Khadiri further expressed satisfaction with Omniyat being among their esteemed corporate clients. He added that this transaction signifies the start of a beneficial partnership while reaffirming Bank of Sharjah's dedication to sustainable finance aligned with their Environmental, Social and Governance (ESG) principles.

Damian White, Chief Treasury Officer at Bank of Sharjah, highlighted that this green Sukuk issuance is an important step in expanding the bank's services and value offered to customers.

This successful transaction not only strengthens Bank of Sharjah’s position as a trusted advisor and lead arranger in regional capital markets but also emphasizes the growing importance of sustainable finance within the GCC region and beyond.

With inputs from WAM