Sharjah gov’t issues EUR 500 mn bonds, with order book 3.5x oversubscribed

The Sharjah government has issued a EUR 500 mn, seven-year bond, pricing it at a 4.698% yield after tightening by 30 basis points (bps) from initial price guidance, Wam reports. Strong investor demand led to 3.5x oversubscription, with 71% of orders coming from outside the MENA region, particularly from the UK, Europe, and the US.

REFRESHER- The EUR 500 mn issuance consists of no-grow, fixed-rate Regulation S senior unsecured bonds maturing in February 2032, and is part of Sharjah’s Global Medium Term Note Program. The Sharjah government began stabilization last week, which will continue until 14 March. The bonds will be listed on the London Stock Exchange and Nasdaq Dubai, with proceeds allocated for general budgetary purposes

REMEMBER- Sharjah previously issued two sustainability-linked bonds in 2024: a EUR 500 mn sustainability bond in July attracting EUR 2.2 bn in orders under its Sovereign Sustainable Financing Framework, and a USD 750 mn green bond in March, also receiving strong demand. Both issuances saw pricing tighten significantly.

ADVISORS- The Bank of Sharjah acted as a joint lead manager, marking its first participation in a EUR-denominated issuance, alongside other international and regional lenders.