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Media IN Sharjah – 26, June, 2019 WAM
Sharjah Islamic Bank, the leading Islamic bank in the UAE has priced its debut Additional Tier 1 (AT1) Sukuk by raising USD 500 million at the lowest price of 5%.
The yield Sharjah Islamic Bank’s AT1 Sukuk offers, is the lowest for an Additional Tier 1 issuance (bonds and sukuk included) in the region. Prior to Sharjah Islamic Bank, the tightest pricing was at 5.25% in 2015.
The bank received incredible response from investors with orders of $4.8 billion or 9.5x over subscription. There were as many as 209 individual orders from Asia, GCC and Europe.
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.
The bank had 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, KFH Capital, and Standard Chartered Bank are the Joint Lead Managers and Joint Bookrunners.
