Sharjah taps sukuk market with a USD 750 mn, 10.5-year issuance: Sharjah’s government raised USD 750 mn from a 10.5-year 144A Reg S sukuk, according to a press release. The issuance saw strong demand, with the order book coming in at USD 1.7 bn excluding joint lead managers after peaking at USD 2 bn earlier, according to a separate press release.

Pricing tightened sharply: Initial guidance at 145 bps over US Treasuries narrowed to a final spread of 110 bps on the back of solid appetite from international investors. The sukuk, which is part of Sharjah’s Trust Certificate Issuance Program, will settle on 25 November.

ADVISORS- Bank of Sharjah served as joint lead manager and HSBC was the dealer and bookrunner for the issuance.

REMEMBER- Last year, the Sharjah government also issued a USD 750 mn, 10.5-year sukuk priced at 140 bps over US Treasuries, tightening 35 bps from initial guidance on strong demand. The order book reached USD 2.6 bn. It also issued EUR 500 mn in 6.5-year sustainability bonds earlier in 2024, and more recently issued a EUR 500 mn, seven-year bond in February. The wave of issuances comes as the government approved its largest-ever budget of AED 42 bn for this year.

Tags: