The Sharjah Bank recently announced its successful involvement as a joint lead manager and bookrunner in a $550 million unsecured sukuk issuance with a five-year term for Al Etihad International Investment. This endeavor was carried out in collaboration with several prominent regional and international banks.
The issuance garnered significant interest from investors, with the subscription being oversubscribed more than four times, leading to a total demand of approximately $2 billion.
Additionally, the recent upgrade of the company’s credit rating by Fitch and Standard & Poor’s from ‘B+’ to ‘BB-‘ played a pivotal role in enhancing investor confidence and contributing to the issuance’s success.
Due to the substantial demand from investors, the issuer was able to reduce the pricing margin by 50 basis points, settling at 7.375%. The increase in the transaction size to $550 million reflects strong demand and the quality of the issuance.
Mohamed Khudairi, CEO of Sharjah Bank, stated: “This issuance marks a significant new milestone in the financing journey of Al Etihad International Investment, following the success of their inaugural sukuk issuance of $350 million in 2023.”
The company managed to increase the issuance size, significantly lower the yield, and attract extensive international participation, with 65% of the issuance allocated to investors outside the Middle East and North Africa region.