Sharjah Islamic Bank raises $500m from AT1 Sukuk

Sharjah Islamic Bank has received orders of $4.8bn for its debut Additional Tier 1 Sukuk – 10 times more than its $500m price.

The bank spent one week on the road, travelling from Asia to Europe, to raise support from investors, pricing the sukuk at the lowest price of 5 per cent. The yield the Sukuk offers is the lowest for an AT1 issuance in GCC history, said a statement from SIB.

“There were as many as 209 individual orders from Asia, the GCC and Europe,” said Ahmed Saad, deputy CEO of SIB.

“We are delighted to witness such demand for our AT1 Sukuk; this reflects our strong relationships with key investors and our footprint in these territories.

“Our first Sukuk issuance was in 2006, and the financial community witnessed how the bank delivered on its promises. The bank’s performance has been steady year after year despite the global climate.”

SIB appointed Citi, HSBC and Standard Chartered Bank as joint global coordinators and joint structuring agents, along with Abu Dhabi Islamic Bank, Bank ABC, Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and KFH Capital.