Sharjah successfully issues $750 million sustainable bond

Bank of Sharjah acts as joint lead manager & bookrunner

Top Stories

Dubai: Sheikh Mohammed announces Dh30-billion rain drainage network

Paid parking in Dubai: Residents face up to Dh4,000 extra yearly costs when new rates kick in

UAE: Worker wins Dh1 million in National Bonds draw after saving Dh100 every month

A view of Sharjah. — File photo

Published: Sun 3 Mar 2024, 7:33 PM

The Government of Sharjah has successfully issued a $750 million 12-year US dollar-denominated 144A/Reg S senior unsecured sustainable bond.

The bond attracted significant investor interest, evidenced by an order book that exceeded $4 billion, showcasing the robust demand and confidence in the Government of Sharjah’s credit story. The issuance was priced with a spread of 195 basis points over US Treasuries, significantly tighter than the initial guidance of 235 basis points, reflecting the strong appetite for the government’s credit from the international investors (outside the region) representing 67 per centof total demand.

Bank of Sharjah, one of the leading commercial banks in the UAE, has acted as a joint lead manager and bookrunner in the successful issuance of the bond, alongside other international and regional banks.

Upon the successful completion of this transaction, Mohamed Khadiri, CEO of Bank of Sharjah, commented: “We are honoured to have played a pivotal role in this landmark Bond issuance for the Government of Sharjah. Our involvement signifies Bank of Sharjah’s commitment to facilitating strategic, high-quality capital market transactions in the Emirate of Sharjah and across the UAE.”

Khadiri further elaborated: “The overwhelming response from investors leading to the tightening of the spread highlights the confidence in Sharjah’s credit and the effective structuring and marketing strategy employed by the joint lead managers. This transaction not only reflects Sharjah’s prudent fiscal management and strong economic fundamentals but also underscores Bank of Sharjah’s expertise in capital markets and its ability to offer bespoke financing solutions and support important clients like the Government of Sharjah.

“Bank of Sharjah remains dedicated to providing a dynamic suite of sustainable financing solutions amid increasing demand from both local and regional clients. This successful deal is another testament to Bank of Sharjah’s continued commitment to ESG principles and sustainable financing. We are proud to support the Government of Sharjah in their sustainability journey and believe that such successful deals will encourage other governments and corporates to prioritize sustainable practices. These financing solutions can act as a catalyst for them to align their operations and investments with global sustainability benchmarks and drive significant and positive change,” Khadiri said.