Post by : Badri Ariffin

Ittihad International Investment LLC has successfully raised $550 million through a five-year senior unsecured Sukuk, in a transaction led by Bank of Sharjah alongside other regional and international banks. The deal saw overwhelming investor interest, with the order book exceeding $2 billion, more than four times the issuance size.

The strong demand allowed Ittihad International to tighten the pricing by 50 basis points to 7.375%, improving terms from the initial guidance, while also increasing the deal size from the originally planned amount. The move highlights investors’ growing confidence in the company’s creditworthiness and resilient business model.

This successful issuance follows the Group’s recent credit rating upgrade by Fitch and S&P, moving from “B+” to “BB-”, which further boosted market appetite. The Sukuk attracted a global investor base, with 65% of allocations going to participants outside the MENA region, reflecting the issuer’s international appeal.

The transaction marks a continuation of Ittihad International’s growth in the capital markets after its debut Sukuk of $350 million in 2023, achieving better pricing and broader investor participation this time. Analysts note that such oversubscription underlines the UAE’s robust financial environment and diversified economy, which continues to draw both regional and international investments.

With this successful issuance, Ittihad International strengthens its financial position and expands its market reach, setting a benchmark for corporate Sukuk activity in the region.

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