The Sharjah Islamic Bank has successfully concluded the issuance of unsecured sukuk worth $500 million, thereby reinforcing its strong position in the markets and its effective financing strategy. This issuance took place amidst significant market volatility and liquidity pressures at the year’s end, reflecting investors’ confidence in the bank’s solid financial position and disciplined balance sheet management.
The sukuk was issued with a five-year maturity at a yield of 4.65%, which is 95 basis points above U.S. Treasury yields. The issuance attracted over $1.35 billion in orders, achieving a coverage ratio of 2.6 times the amount offered, with substantial participation from investors across the Middle East, Europe, and Asia. This highlights the bank’s appeal to global investors and the ongoing strong international demand for high-quality Islamic sukuk.
Mohammed Abdullah, the CEO of Sharjah Islamic Bank, stated that the bank’s activities in the capital markets are a fundamental part of its long-term financing strategy, which has been successfully implemented since 2006. He added, “This new issuance demonstrates our ability to efficiently access global markets even in challenging conditions while maintaining prudent liquidity management. It marks the tenth issuance of unsecured sukuk by the bank, which reinforces our position as a reliable and consistent issuer. With this issuance, the number of outstanding sukuk increases to three, with one maturing in 2029 and two in 2030. Notably, this is the bank’s third issuance within 2025.”
Ahmed Saad, the Deputy CEO of the bank, explained that despite the market fluctuations, strong demand from both regional and international investors allowed Sharjah Islamic Bank to narrow the pricing margin by 30 basis points compared to the initial pricing. This success reflects investors’ confidence in the bank’s creditworthiness and our commitment to executing our strategy effectively. He expressed gratitude to the lead managers for their professional coordination, which helped attract distinguished investment institutions, thereby enhancing Sharjah Islamic Bank’s presence in the global sukuk market.