Sharjah gov’t starts stabilization period on bond issuance: The Sharjah government tapped banks and began the stabilization process for its EUR 500 mn bond issuance, according to a London Stock Exchange disclosure. The period started yesterday and will run up to 14 March.

The details: The EUR 500 mn issuance consists of no-grow, fixed-rate Regulation S senior unsecured bonds, maturing in February 2032, Zawya reports. The bonds will be issued under Sharjah’s Global Medium Term Note Program and listed on the London Stock Exchange and Nasdaq Dubai.

Proceeds from the issuance will be used for general budgetary purposes. With the offering representing 2.3% of the emirate’s total outstanding debt, the refinancing risk is minimal. The issuance comes as Sharjah recently approved its largest-ever budget of AED AED 42 bn for 2025.

ICYMI- This follows Sharjah’s two sustainability-related bond issuances in 2024: a EUR 500 mn sustainability bond in July to fund eligible expenditures under its Sovereign Sustainable Financing Framework, which drew some EUR 2.2 bn in orders, and a USD 750 mn green bond in March. The emirate managed to tighten pricing for both issuances, with the debut issuance priced at 190 basis points (bps) over mid-swaps, down from initial price guidance in 220 bps area, and the latter priced at 195 basis points over US Treasuries, significantly tighter than the initial guidance of 235 basis points.

ADVISORS- Abu Dhabi Commercial Bank, Bank of Sharjah, Crédit Agricole CIB, Emirates NBD Capital, HSBC, IMI-Intesa Sanpaolo and JP Morgan will act as joint lead managers and joint bookrunners, as well as stabilization managers — meaning they may conduct transactions to support the market price, including over-the-counter trades or over-allotments of up to 5% of the bond’s nominal value.

ALSO- Moody’s assigned Sharjah a long-term sovereign credit rating of Ba1 with a stable outlook, following its most recent credit review, Al Khaleej reports. The rating was supported by the emirate’s high per capita income, diversified economy, and the positive broader outlook for the UAE. Moody’s highlighted Sharjah’s sustainable approach to managing its debt, which is expected to rise in the coming years, and noted that the introduction of the new federal corporate tax could lead to improved economic performance.

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