Post by : Badri Ariffin

Sharjah Islamic Bank (SIB) has successfully raised $500 million through a five-year senior unsecured Sukuk, demonstrating robust investor confidence despite challenging market conditions. The transaction was launched during a period of heightened market volatility and year-end liquidity pressures, yet it drew an order book exceeding $1.35 billion — more than 2.5 times the offered amount.

Priced at a yield of 4.65 percent, equivalent to a 95 basis points spread over US Treasuries, the Sukuk attracted investors from the Middle East, Europe, and Asia. This broad participation reflects SIB’s strong market presence and the sustained global appetite for high-quality Islamic financial instruments.

The deal marks SIB’s tenth senior unsecured Sukuk issuance, reinforcing its reputation as a consistent and trusted issuer in the capital markets. With this issuance, the bank now holds three outstanding Sukuk, one maturing in 2029 and two in 2030, aligning with its strategic approach to long-term funding and liquidity management.

The bank’s careful balance sheet planning and proactive funding strategy were key factors in the transaction’s success, enabling pricing to tighten by 30 basis points from initial guidance. The outcome highlights SIB’s ability to access global capital markets efficiently while maintaining prudent financial discipline.

This latest Sukuk is part of SIB’s broader strategy to leverage capital market activities as a core element of its funding framework, sustaining growth and investor trust across regions.

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