Bank Of Sharjah Successfully Issues $750 Million Sukuk For Government Of Sharjah Amid Strong Investor Demand

The Bank of Sharjah has played a significant role as a Joint Lead Manager in the issuance of a US$750 million, 10.5-year Sukuk for the Government of Sharjah. This issuance, denominated in US dollars under the 144A/Reg S format, was supported by both international and regional banks. The strong investor interest resulted in an order book peaking at $2.6 billion, highlighting global confidence in Sharjah's creditworthiness.

The Sukuk was initially offered with a price guidance of US Treasuries plus 175 basis points. However, due to high demand, the final pricing tightened to 140 basis points over US Treasuries. Notably, 34% of the total orders originated from outside the MENA region, indicating broad international appeal.

Mohamed Khadiri, CEO of Bank of Sharjah, expressed pride in their involvement with this Sukuk issuance. He stated, "We are proud to have played a key role in this landmark Sukuk issuance for the Government of Sharjah, reflecting our deep commitment to the Emirate’s financial growth and development." Khadiri emphasized that both local and international investors' strong interest signifies confidence in Sharjah's economic stability and fiscal discipline.

Khadiri further highlighted the collaborative efforts with partners that allowed effective structuring of the Sukuk. This approach ensured it met diverse investor needs while reinforcing Sharjah's standing in global capital markets. He added that Bank of Sharjah is dedicated to offering financial solutions that promote economic progress.

Damian White, Head of Treasury at Bank of Sharjah, remarked on the significance of this Sukuk issuance. He noted it as a crucial milestone in enhancing financial collaboration with the Government of Sharjah. The bank aims to continue supporting growth and development objectives through strategic partnerships.

This successful Sukuk issuance represents an important step for Bank of Sharjah in strengthening its support for governmental initiatives. The bank remains committed to partnering with key stakeholders to facilitate ongoing economic development within the Emirate.

The positive reception from investors underscores confidence not only in Sharjah's fiscal management but also in its broader economic prospects. Such financial activities are pivotal for sustaining growth and attracting further investment into the region.

With inputs from WAM