Arabian Post Staff -Dubai
The sukuk was priced at a final yield and periodic distribution rate of 5.85 per cent, equivalent to a spread of 105 basis points over five-year US Treasuries. The transaction was priced at par and represented the bank’s 13th sukuk issuance since it entered international capital markets in 2006.
Investor demand enabled Sharjah Islamic Bank to tighten pricing by 30 basis points from initial guidance around 135 basis points over US Treasuries. Earlier order indications had exceeded $1.2 billion excluding interest from joint lead managers before the final book reached $1.3 billion.
The Reg S senior unsecured certificates were issued through SIB Sukuk Company III Limited, with Sharjah Islamic Bank acting as obligor. The securities carry an A- rating from S&P Global Ratings, matching the agency’s issuer rating for the bank. Sharjah Islamic Bank is separately rated BBB+ by Fitch Ratings.
The transaction is expected to be listed on Nasdaq Dubai and Euronext Dublin, extending the lender’s use of international debt markets for funding and liquidity management. Standard Chartered acted as a bookrunner on the transaction.
Mohamed Abdalla, chief executive of Sharjah Islamic Bank, said capital-market activity remained a key component of the bank’s funding strategy, supporting financing plans and its capacity for sustainable growth.
“We continue to build on SIB’s presence in international capital markets, supported by solid financial fundamentals and a disciplined approach to balance sheet and liquidity management,” Abdalla said. He added that this supported the bank’s growth objectives and its position as an issuer in international sukuk markets.
Deputy chief executive Ahmed Saad said the $1.3 billion order book demonstrated investor demand for the transaction and confidence in the bank’s ability to execute international capital-market issuances. He said the deal also increased flexibility in managing funding requirements and diversifying liquidity sources.
The issuance comes against a backdrop of continued activity in the global sukuk market. Moody’s Ratings expects worldwide sukuk issuance to total about $280 billion in 2026, broadly matching 2025 levels despite geopolitical uncertainty in the Middle East. Issuance reached about $130 billion during the first half of the year, with record corporate-sector activity and higher short-term issuance offsetting weaker long-term issuance by sovereigns and financial institutions.
Sharjah Islamic Bank entered the transaction with an expanded balance sheet and stronger first-half earnings. The bank reported net profit after tax of AED803.9 million for the six months ended June 30, up 15.3 per cent from AED697.2 million in the corresponding period of 2025.
Total assets stood at AED94.5 billion at the end of June, an increase of 4.7 per cent from AED90.3 billion at the end of 2025. Its Islamic financing portfolio grew 9.5 per cent over the same period to AED49.9 billion, while customer deposits increased 6.6 per cent to AED59.4 billion.
Income from investments in Islamic financing and sukuk rose 12.1 per cent year on year to about AED2.1 billion in the first half, while total distributions to depositors and sukuk holders increased to approximately AED1.2 billion. Liquid assets were AED19.8 billion, equivalent to 20.9 per cent of total assets.
The bank’s capital base was also strengthened during the first half through a rights issue of 1.1 billion new shares at a nominal value of AED1 each, plus a share premium of AED1.4 per share. Shareholders’ equity increased by AED2.6 billion following the capital raising.
Net operating income before impairment provisions and tax rose 22.3 per cent to AED925.8 million, while total operating income increased 20.5 per cent to AED1.4 billion. Net fee, commission and other operating income advanced 8.1 per cent to AED445.7 million.
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