SIB successfully issues $500 M Sukuk amid strong global demand

November 05, 2025 / 1:55 PM

Sharjah24: Sharjah Islamic Bank (SIB) successfully issued USD 500 million senior unsecured Sukuk, enhancing its position in global markets. Despite volatile market conditions and liquidity pressures, the transaction shows strong investor confidence in the Bank’s creditworthiness and funding strategy.

The five-year Sukuk was priced at a yield of 4.65%, reflecting a spread of 95 basis points over U.S. Treasuries. The issuance garnered orders exceeding USD 1.35 billion, resulting in an oversubscription of 2.6 times, with wide participation from investors across the Middle East, Europe, and Asia.

The success of the issuance highlights the ongoing global demand for high-quality Islamic financial instruments and reinforces SIB’s strong reputation as a dependable issuer in the international Sukuk market.

Reaffirming strategic funding and investor confidence

His Excellency Mohamed Abdalla, Chief Executive Officer of Sharjah Islamic Bank, stated that capital market activities remain a fundamental pillar of SIB’s long-term funding strategy, which has been consistently pursued since 2006.

This latest Sukuk demonstrates our ability to access global markets effectively, even in challenging conditions, while maintaining cautious liquidity management. It also marks our tenth issuance of senior unsecured Sukuk, enhancing SIB’s reputation as a reliable and consistent issuer,” he said.

He added that, with this transaction, SIB now holds three outstanding Sukuk, one maturing in 2029 and two in 2030, noting that this was the Bank’s third capital markets transaction in 2025.

Sustained trust in SIB’s credit strength

His Excellency Ahmed Saad, Deputy CEO of Sharjah Islamic Bank, emphasised that despite the volatile environment, strong regional and international investor demand enabled the Bank to lower pricing by 30 basis points from initial guidance.

“The successful outcome reflects investor confidence in SIB’s solid credit profile and its disciplined, strategic execution,” he said, expressing appreciation to the Joint Lead Managers and Bookrunners for their support and seamless coordination, which ensured high-quality institutional participation.

The issuance further enhances SIB’s presence in the global Sukuk market and aligns with its vision of sustainable growth, while continuing to offer investors secure, Shariah-compliant investment opportunities.