Sharjah Islamic Bank Achieves Remarkable Success with USD 500 Million Sukuk Issuance Amidst Challenging Market Conditions

Sharjah Islamic Bank (SIB) has once again demonstrated its resilience and strong market standing with the successful pricing of a USD 500 million senior unsecured sukuk on 19 February 2025, at a yield of 5.20%, translating into a spread of 89.8bps over 5-year U.S. Treasuries.

Despite challenging market conditions, the transaction attracted exceptional investor demand, with the order book peaking at USD 1.7 billion—an oversubscription of 3.4 times. Participation was broad-based, with strong interest from investors across the MENA region, Europe, and Asia, highlighting deep confidence in SIB’s credit strength and the resilience of Islamic finance.

H.E. Mohamed Abdalla, CEO of the Sharjah Islamic Bank, said “capital markets activities are part of the bank’s market funding strategy which has been successfully implemented since 2006. This issuance marks SIB’s ninth successful senior unsecured sukuk, reinforcing its reputation as a consistent and trusted issuer in global sukuk space. The bank currently has three outstanding senior unsecured sukuk, maturing in 2025, 2029 and 2030.”

H.E. Ahmed Saad, Deputy CEO of SIB, commenting on the success of the transaction, emphasized that despite a difficult market environment, the robust demand from regional and international investors enabled SIB to tighten pricing by 35.2bps from initial guidance. He highlighted the bank’s strategic execution and disciplined approach, which ensured a well-balanced outcome despite external market pressures.

H.E. Ahmed Saad also expressed his sincere appreciation to the Joint Lead Managers and Bookrunners for their valuable insights, seamless execution, and ability to attract high-quality international investors, further strengthening SIB’s presence in the global markets.