SIB successfully issues US$500 million sukuk

SHARJAH / WAM

The Sharjah Islamic Bank PJSC (SIB) successfully issued a US$500 million sukuk (Islamic finance bond) in international capital markets, eliciting an outstanding response from investors and garnering orders to the tune of US$1.6 billion, thus resulting in being 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 percent. 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.
Mohammed Abdullah, CEO of Sharjah Islamic Bank, said, “This is our fifth foray into the international capital markets, having issued our first sukuk as early as 2006. The bank remains strong and under prudent management, a fact that is clearly reflected in the ratings and pricing of our transactions.”