Sharjah Islamic Bank issues $500 million Sukuk amid strong investor demand

Sharjah Islamic Bank (SIB) has successfully issued a $500 million five-year Sukuk amid strong investor demand.

The issuance attracted an order book of $1.3 billion, representing 2.6 times the issue size.

The Sukuk was priced at a final yield of 5.85 per cent, equivalent to a spread of 105 bps over five-year US Treasuries, marking SIB’s thirteenth Sukuk issuance since it entered the capital markets in 2006, reaffirming its continued presence in international Sukuk markets and its experience in executing successful issuances across different market cycles.

Mohamed Abdalla, CEO of Sharjah Islamic Bank, said the successful issuance reflects investor confidence in the bank’s financial performance and long-term strategy.

He noted that capital market activities are a key component of SIB’s funding strategy, supporting its financing plans and strengthening its ability to achieve sustainable growth.

“We continue to build on SIB’s presence in international capital markets, supported by solid financial fundamentals and a disciplined approach to balance sheet and liquidity management. This strengthens our ability to achieve sustainable growth and maintain our position as a trusted issuer in international Sukuk markets,” he added.

Ahmed Saad, Deputy CEO of Sharjah Islamic Bank, said the $1.3 billion order book, representing 2.6 times the issue size, reflects strong investor demand for the issuance and confirms investors’ confidence in the bank and its ability to execute successful issuances in international capital markets.

He added that the successful issuance strengthens the bank’s flexibility in managing its funding needs and diversifying its sources of liquidity, supporting its long-term growth plans.

WAM