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Sharjah issues $750 Million 10.5-Year Islamic bonds

Sharjah issues bonds

The spread has been fixed at 180 basis points over US Treasuries.

Introduction: 

The Emirate of Sharjah has recently launched $750 million in 10.5-year Islamic bonds, with the maturity date set for March 2034. The spread for these bonds has been determined at 180 basis points over US Treasuries, reflecting strong investor demand and favorable market conditions. 

This move highlights Sharjah’s commitment to raising funds through the issuance of Islamic bonds.

Key Details: 

  • Bond Offering: Sharjah has launched a $750 million issuance of Islamic bonds, also known as Sukuk. These bonds have a maturity period of 10.5 years, with the repayment date scheduled for March 2034.
  • Competitive Spread: The spread for these Islamic bonds has been fixed at 180 basis points over US Treasuries. This spread was determined after considering market conditions and investor appetite.
  • Strong Investor Demand: The order book for Sharjah’s Islamic bond issuance exceeded $3.40 billion, indicating robust demand from investors. This high level of interest likely contributed to the tighter spread, which was initially guided at 220 basis points over US Treasuries earlier in the day.
  • Debt Sale Arrangement: Multiple banks have played a role in arranging and facilitating this debt sale, further highlighting investor confidence in the offering.

Conclusion: 

Sharjah’s successful issuance of $750 million in 10.5-year Islamic bonds with a competitive spread of 180 basis points over US Treasuries underscores investor interest in the emirate’s debt offerings. 

The substantial demand from investors, coupled with the favorable spread, reflects confidence in Sharjah’s financial stability and the attractiveness of its debt securities. This issuance serves as a strategic move to raise funds and support various development initiatives in the emirate.

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