The sukuk, which will mature in five years, was priced at 105 basis points above the US Treasury bond yield. It carries a profit rate of 5.25% annually, with its maturity date set for July 3, 2029. The bank managed to reduce the pricing basis by 35 basis points after announcing the bond's interest rates at 140 basis points, thanks to the high demand from international and Middle Eastern investors.
Mohammed Abdullah, the CEO of Sharjah Islamic Bank, expressed his gratitude to all investors for their trust in the bank and their keenness to invest in the sukuk it offered, stating, "This represents our ninth participation in the global capital markets, as we issued sukuk in 2006. Sharjah Islamic Bank maintains its strong performance thanks to wise management, which is reflected in the ratings and pricing of our transactions."
A delegation from Sharjah Islamic Bank, led by Ahmed Saad, the bank's Deputy CEO, was present during the sukuk issuance. He was accompanied by Saed Al Ameri, Head of Investments, Treasury, and Financial Institutions, and Ali Wahab, Head of Investment Banking.
In his speech to international investors, Ahmed Saad highlighted the strengths of the banking system in the United Arab Emirates in general and Sharjah Islamic Bank in particular. He emphasized the diversified geographic allocation of the sukuk, which was a primary objective of the issuance, stating, "We have achieved diversified allocation, with the Middle East receiving 80%, while Asia and Europe received 13% and 7% respectively. The credit story in the Middle East, in general, and Sharjah Islamic Bank, in particular, was remarkably strong and encouraging for us, despite the volatile market backdrop."
Sharjah Islamic Bank selected Standard Chartered, Emirates NBD Capital, and HSBC as joint lead managers. It also appointed Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, ADCB, Dubai Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, and Qatar National Bank Capital as joint bookrunners.
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