Sharjah Islamic Bank Successfully Prices $500 Million Perpetual Sukuk Amid Strong Investor Demand

Sharjah Islamic Bank (SIB) has successfully issued a US$ 500 million perpetual Additional Tier 1 sukuk. This issuance, with a fixed profit rate of 6.125 percent and a six-year non-call period, is noted as the tightest AT1 issuance globally in 2025. The reset spread stands at 195.6 basis points, marking a reduction of 125.7 basis points from the spread achieved in 2019.

The issuance was met with strong demand, being oversubscribed by more than two times. Investors from the GCC, Europe, and Asia showed significant interest, highlighting the confidence international financial institutions and investment funds have in SIB. This transaction underscores the bank's strategic use of capital markets to bolster its growth and capital base.

Mohamed Abdalla, CEO of Sharjah Islamic Bank, stated, "This latest sukuk issuance reflects the continued success of our strategy to leverage capital markets in supporting the SIB’s financial position and long-term expansion. Since our first sukuk in 2006, we have built a solid track record as a trusted and consistent issuer in the global Islamic finance space. This marks our tenth sukuk issuance, reaffirming SIB’s leadership in the international sukuk market."

The transaction attracted exceptional interest from a diverse investor base, exceeding expectations significantly. Ahmed Saad, Deputy CEO of Sharjah Islamic Bank, remarked on this interest by saying it highlights growing trust in SIB's performance and future vision. He added that the strong pricing outcome affirms SIB’s status as a robust Islamic banking institution offering innovative Sharia-compliant solutions.

This latest issuance builds on SIB's successful history in the sukuk market. In February 2025, SIB priced another US$500 million sukuk at a profit rate of 5.20 percent with an 89.8 basis point margin over five-year US Treasury notes. Despite market volatility at that time, this deal attracted over US$1.7 billion in orders—more than three times its size—with strong participation from investors across various regions including the Middle East and North Africa.

The joint lead managers and bookrunners for this issuance included Arqaam Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Kamco Invest, Mashreq Bank, and Standard Chartered Bank.

Strategic Financial Growth

This transaction is part of SIB's broader strategy to strengthen its capital structure while expanding business across key markets. The bank remains committed to financial governance, resilience, and sustainability through these efforts.

SIB continues to demonstrate its ability to attract substantial investor interest despite challenging market conditions. By maintaining deep engagement with global investors and offering Sharia-compliant financial solutions, SIB reinforces its position as a leading institution within Islamic banking.

With inputs from WAM