Sharjah Islamic Bank (SIB) has reinforced its standing in global capital markets with the successful issuance of a US$500 million senior unsecured Sukuk. The transaction, completed during a period of heightened market volatility and year-end liquidity pressures, highlights the bank’s resilient fundamentals and disciplined approach to funding.
Strong market reception reflects investor confidence
The five-year Sukuk was priced at a yield of 4.65 percent, corresponding to a spread of 95 basis points over US Treasuries. Investor appetite proved exceptionally strong, with the order book exceeding $1.35 billion, representing an oversubscription of 2.6 times. Participation spanned the Middle East, Europe, and Asia, underlining SIB’s broad investor appeal and the sustained global demand for high-quality Islamic instruments.
Strategic funding and capital market expertise
Mohamed Abdalla , CEO of SIB, emphasised that capital market activity remains central to the bank’s long-term funding strategy, successfully executed since 2006. He noted that the latest Sukuk demonstrates SIB’s capacity to access global markets efficiently, even amid challenging conditions, while maintaining prudent liquidity management. This issuance marks the bank’s tenth senior unsecured Sukuk, further solidifying its reputation as a reliable and consistent issuer.
“Following this transaction, SIB holds three outstanding Sukuk, with maturities in 2029 and 2030. This represents our third engagement with capital markets in 2025 alone,” Abdalla added.
Investor confidence drives pricing and execution
Ahmed Saad , Deputy CEO of SIB, highlighted that strong regional and international demand enabled the bank to tighten pricing by 30 basis points from initial guidance. “The successful outcome underscores investor confidence in SIB’s credit profile and reflects our continued commitment to strategic execution,” he said.
The Sukuk issuance exemplifies SIB’s proactive funding strategy, robust market positioning, and the ongoing appeal of high-quality Islamic finance instruments to investors across the globe.
Strong market reception reflects investor confidence
The five-year Sukuk was priced at a yield of 4.65 percent, corresponding to a spread of 95 basis points over US Treasuries. Investor appetite proved exceptionally strong, with the order book exceeding $1.35 billion, representing an oversubscription of 2.6 times. Participation spanned the Middle East, Europe, and Asia, underlining SIB’s broad investor appeal and the sustained global demand for high-quality Islamic instruments.
Strategic funding and capital market expertise
Mohamed Abdalla , CEO of SIB, emphasised that capital market activity remains central to the bank’s long-term funding strategy, successfully executed since 2006. He noted that the latest Sukuk demonstrates SIB’s capacity to access global markets efficiently, even amid challenging conditions, while maintaining prudent liquidity management. This issuance marks the bank’s tenth senior unsecured Sukuk, further solidifying its reputation as a reliable and consistent issuer.
“Following this transaction, SIB holds three outstanding Sukuk, with maturities in 2029 and 2030. This represents our third engagement with capital markets in 2025 alone,” Abdalla added.
Investor confidence drives pricing and execution
Ahmed Saad , Deputy CEO of SIB, highlighted that strong regional and international demand enabled the bank to tighten pricing by 30 basis points from initial guidance. “The successful outcome underscores investor confidence in SIB’s credit profile and reflects our continued commitment to strategic execution,” he said.
The Sukuk issuance exemplifies SIB’s proactive funding strategy, robust market positioning, and the ongoing appeal of high-quality Islamic finance instruments to investors across the globe.
You may also like
Russia to resume nuclear tests? Putin tells officials to 'analyse US intentions' — here's what he said
Lewis Hamilton delivers honest admission to frustrated Ferrari fans amid F1 struggles
Unique side hustles in the UK include creating custom jingles and building bug hotels
'Bihar's future in your hands': Rahul Gandhi's appeal to 'Gen Z' on eve of phase 1 polling; urges youth to prevent 'vote chori' - watch
PM Modi turned calamity into opportunity: Gujarat BJP chief
