SIB tightens pricing on its USD 500 mn sukuk

Sharjah Islamic Bank (SIB) tightened pricing by about 30 bps from initial guidance for its USD 500 mn five-year sukuk, landing at 95 bps over US Treasuries after drawing more than USD 1.3 bn in orders excluding lead manager interest, Zawya reports. SIB flagged plans to go through with the issuance earlier this week when it tapped banks, including our friends at Mashreq and HSBC, to manage the offering.

The fixed-rate Wakala sukuk carries a 4.60% coupon and a 4.651% yield, and will be issued under the bank’s USD 3 bn trust certificate program. The senior unsecured notes will list on Euronext Dublin and Nasdaq Dubai.

A busy year for SIB: SIB, rated A- by S&P and BBB+ by Fitch, tapped the market twice this year with a USD500 mn sukuk in February followed by a USD 500 mn perpetual AT1 note in May which were listed on Euronext Dublin and Nasdaq Dubai.

ADVISORS- Emirates NBD Capital and Standard Chartered Bank were joint global coordinators. Ajman Bank, Bank ABC, Dubai Islamic Bank, First Abu Dhabi Bank, HSBC, Mashreq, and The Islamic Corporation for the Development of the Private Sector acted as joint lead managers and bookrunners.