Bank Of Sharjah Successfully Manages €500 Million Bond Issuance For Government Of Sharjah

The Government of Sharjah has successfully issued a €500 million bond with a seven-year maturity. Bank of Sharjah played a crucial role as a joint lead manager and bookrunner, collaborating with other regional and international banks. This issuance attracted significant interest from investors, resulting in an oversubscription rate of 3.5 times, showcasing strong confidence in Sharjah's creditworthiness.

The bond was priced at an annual yield of 4.698 percent, which is 30 basis points tighter than the Initial Price Thoughts (IPT). This favourable pricing was made possible by the robust demand from the market. A notable 71 percent of the total orders came from investors based in the UK, Europe, and US offshore markets, highlighting Sharjah's strong appeal to global capital markets.

Mohamed Khadiri, CEO of Bank of Sharjah, expressed that this bond issuance represents a significant milestone in their ongoing partnership with the Government of Sharjah. He stated, "This issuance marks a key milestone in our continued collaboration with the Government of Sharjah to support the emirate's economic growth and development objectives." The issuance also marks their first participation in a euro-denominated bond, showcasing their expertise in managing Debt Capital Markets transactions across various currencies.

Khadiri further emphasised that the substantial involvement of international investors reflects their confidence in Sharjah's economic resilience and fiscal discipline. The successful bond issuance underscores the emirate's solid economic foundations and promising investment prospects.

Damian White, Chief Treasury Officer at Bank of Sharjah, highlighted that this bond issuance is an important step towards enhancing financial cooperation with the Sharjah government. He noted that proactive demand from global investors underscores the high value and attractiveness of these issuances. White added that their participation not only fulfilled the government's financing requirements but also highlighted Sharjah's economic strength and investment opportunities.

The overwhelming investor interest demonstrates global trust in Sharjah's financial stability and strategic direction. The successful bond issuance will likely bolster future collaborations between Bank of Sharjah and the government to support economic growth initiatives.

With inputs from WAM