Sharjah Islamic Bank has successfully issued a $500 million sukuk, marking its sixth offering under the bank’s $3 billion Trust Certificate Issuance Programme established in 2013. The five-year Islamic bond, maturing in July 2029, attracted robust interest from both regional and international investors, with orders reaching $1.5 billion, resulting in an oversubscription rate of three times the offered amount.
The sukuk has been dual-listed on Nasdaq Dubai and Euronext Dublin, reinforcing SIB’s commitment to broadening its investor base and enhancing the visibility of Islamic financial instruments in global markets. The issuance was structured using a combination of Ijara and Murabaha contracts, adhering to Sharia-compliant financing principles.
Emirates NBD Capital, HSBC, Standard Chartered, Abu Dhabi Islamic Bank , Dubai Islamic Bank , Mashreq Bank, and Warba Bank served as joint lead managers and bookrunners for this transaction. Their collaboration underscores the confidence of major financial institutions in SIB’s financial stability and the growing appeal of sukuk as an investment vehicle.
The successful issuance of this sukuk highlights the increasing demand for Islamic finance products and the UAE’s position as a hub for Sharia-compliant financial activities. Nasdaq Dubai’s role in facilitating such listings has been pivotal, with the exchange’s total value of listed sukuk reaching $93.89 billion, further solidifying its status as a leading global market for sukuk issuances.
This development comes at a time when regional banks are actively tapping into the sukuk market to bolster their capital reserves and support expansion plans. The favorable market conditions and investor appetite for high-quality Islamic bonds have provided an opportune environment for issuers like SIB to secure funding on competitive terms.
The proceeds from this sukuk are expected to be utilized for general corporate purposes, including the enhancement of SIB’s liquidity position and the financing of new projects that align with the bank’s strategic objectives. This move is anticipated to strengthen SIB’s financial footing and enable it to better serve its clientele in a dynamic economic landscape.
