Sharjah Islamic Bank Issues Lowest Ever Additional Tier 1 USD Issue in GCC

Press release

Published June 26th, 2019 - 09:46 GMT

Sharjah Islamic Bank

Highlights

Sharjah Islamic Bank, leading islamic bank in the UAE has priced its debut Additional Tier 1 (AT1) Sukuk by raising USD 500 million at the lowest price of 5%.

Sharjah Islamic Bank, leading islamic bank in the UAE has priced its debut Additional Tier 1 (AT1) Sukuk by raising USD 500 million at the lowest price of 5%. The yield SIB’s AT1 Sukuk offers, is the lowest for an AT1 issuance (bonds and sukuk included) in the region. Prior to SIB, the tightest pricing was at 5.25% in 2015.

The bank received tremendous response from investors with orders of $4.8 billion or 9.5x over subscription. There were as many as 209 individual orders from Asia, GCC and Europe.

As part of the contractual terms, the sukuk is a Non Call 6 years Perpetual Instrument which will reset to 6 years Treasuries in 2025.

The bank had appointed Citi, HSBC and Standard Chartered Bank as Joint Global Coordinators and Joint Structuring Agents along with Abu Dhabi Islamic Bank, Bank ABC, Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, and Standard Chartered Bank are the Joint Lead Managers and Joint Bookrunners.

Background Information

Sharjah Islamic Bank

We believe in our vision and values just as strongly today as we did the first time we put them on paper more than 30 years ago.

Sharjah Islamic Bank (SIB) started servicing the society in 1975; providing banking services to individuals and companies. An Amiri decree; released by His Highness Dr. Sheikh Sultan Bin Mohamed Al Qassimi the member of the Supreme Council & Ruler of Sharjah, was issued to launch & green-light the bank’s expedition. The bank was originally founded as National Bank of Sharjah and was suited the first bank to convert to Islamic Banking in 2002.