Sharjah Islamic Bank PJSC (SIB), a leading UAE Islamic bank, successfully closed a USD500 million sukuk (Islamic finance “bond”) in international capital markets, on Thursday. The issuance received an outstanding response from international investors, garnering orders to the tune of USD1.6 billion or 3.2 times over subscribed.
With a maturity of five years, the sukuk was priced at a spread of 185 bps + five-year mid-swaps, translating into a coupon of 3.084 per cent. The bank was also successfully able to tighten by 20 bps, having announced IPTs at 205 bps + five-year mid-swaps, due to strong demand from international and Middle Eastern investors.
HE Mohammed Abdullah, CEO of Sharjah Islamic Bank thanked all the investors for their vote of confidence in the bank by investing in the sukuk, saying:
“This is our fifth foray into the international capital markets, having issued our first sukuk as early as 2006. The bank remains strong, under prudent management, and that is clearly reflected in the ratings and pricing of our transactions.”
The Sharjah Islamic Bank delegation in Singapore and London, earlier this week, was led by Deputy CEO, Ahmed Saad, who was accompanied by Saeed Al Amiri, Head of Investment Group, Anver Jalaldeen, Head of Investment Banking and Ali Wahab, AVP for Investment Banking. Presenting to a large number of international investors, Saad highlighted the strengths of the UAE banking system and Sharjah Islamic Bank, in particular; with the meetings in both Asia and the UK receiving an excellent reception.
Speaking on the sidelines of the UK meetings, Saad said: “The sukuk’s diverse geographical distribution was a key target of the issue. The Middle East getting 59 per cent while Asia, Europe and US Offshore getting 22, 16 and three per cent, respectively. The interest in the Middle Eastern credit story and Sharjah Islamic Bank’s individual ratings were very strong for us.”
The bank was advised by HSBC and Standard Chartered as Joint Global Coordinators, with Bank ABC, Dubai Islamic Bank, ENBD Capital, HSBC, KFH Capital, Maybank, Noor Bank, QNB Capital and Standard Chartered Bank acting as bookrunners. Ajman Bank, Union National Bank, Warba Bank acted as the Co-Lead Managers.