Sharjah Islamic Bank raises US$ 500 million from AT1 Sukuk

SHARJAH, After one week on the road from Asia to Europe, Sharjah Islamic Bank, SIB, received a tremendous response from investors with orders of $4.8 billion oversubscribed almost 10 times.

SIB priced its debut Additional Tier 1 (AT1) Sukuk by raising US$ 500 million at the lowest price of 5 percent. The yield SIB’s AT1 Sukuk offers is the lowest for an AT1 issuance (bonds and sukuk included) in the GCC’s AT1 market history.

Ahmed Saad, Deputy CEO of SIB, said, “There were as many as 209 individual orders from Asia, GCC and Europe. We are delighted to witness such demand for our AT1 Sukuk; this reflects our strong relationships with key investors and our footprint in these territories.

“Our first Sukuk issuance was in 2006, and the financial community witnessed how the bank delivered on its promises. The bank’s performance has been steady year after year despite the global climate.”

Saad added, “The investors saw solid management with a clear vision and mandate, and a growth in market share and credibility with delivery.”

As part of the contractual terms, the Sukuk is a Non Call 6 years Perpetual Instrument which will reset to 6 years Treasuries in 2025.

SIB appointed Citi, HSBC and Standard Chartered Bank as Joint Global Coordinators and Joint Structuring Agents along with Abu Dhabi Islamic Bank, Bank ABC, Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and KFH Capital.

Source: Emirates News Agency