Bank Of Sharjah Successfully Prices $500 Million Bond Amid Strong Global Investor Demand

Bank of Sharjah has successfully issued a $500 million senior unsecured bond in international markets. The issuance was met with significant interest, attracting orders exceeding $1.8 billion, which is 3.6 times the amount offered. The bonds have a five-year term and offer an annual coupon rate of 4.875%.

The bank's comprehensive marketing efforts included global investor calls and roadshows in Dubai and London. This strategy led to a price tightening of 30 basis points from the initial guidance, highlighting strong demand from both international and regional investors. This achievement underscores Bank of Sharjah’s robust credit profile and its ability to secure competitive terms in international capital markets.

Mohamed Khadiri, CEO of Bank of Sharjah, commented on the success: "Despite a period of heightened market volatility driven by various economic and geopolitical factors, as well as competing issuances, we successfully secured strong investor demand. This demonstrates continued confidence in our turnaround strategy, financial resilience, and growth prospects."

Khadiri further noted that this marks the bank's sixth entry into public international capital markets. The new issuance not only strengthened ties with existing investors but also attracted new participants from both regional and global markets.

Damian White, Chief Treasury Officer at Bank of Sharjah, expressed satisfaction with the bond issue's outcome: "This new bond issue marks an important milestone in the transformation of Bank of Sharjah. Our objective was to diversify our investor base while ensuring that the pricing reflected the Bank’s improved financial performance under its renewed strategic direction."

White highlighted that the final terms were favourable compared to past issuances, laying a solid foundation for future access to capital markets. He acknowledged the support from Joint Lead Managers and legal advisors as crucial to the deal's success.

Collaborative Efforts and Advisory Support

The bank received advisory support from several institutions including Arqaam Capital, Bank ABC, Bank of Bahrain and Kuwait, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, IMI-Intesa Sanpaolo, Kamco Invest, and Standard Chartered Bank.

This successful bond issuance reflects Bank of Sharjah's strategic efforts to enhance its financial standing while expanding its investor base globally. The positive response from investors indicates trust in the bank’s strategic direction and financial health.

With inputs from WAM