Sharjah Islamic Bank Successfully Issues USD 500 Million Sukuk Amid Busy Market Conditions

Sharjah Islamic Bank (SIB) has successfully completed the issuance of a USD 500 million senior unsecured Sukuk, reaffirming its strong market position and proactive funding strategy. Launched amid heightened market volatility and year-end liquidity pressure, the transaction underscores investor confidence in the Bank’s solid fundamentals and disciplined approach to balance sheet management.

The five-year Sukuk was priced at a yield of 4.65%, equivalent to a spread of 95 bps over U.S. Treasuries. The deal attracted an order book exceeding USD 1.35 billion, representing an oversubscription of 2.6x times, with broad participation from investors across the Middle East, Europe, and Asia, demonstrating SIB’s wide investor appeal and the continued global demand for high-quality Islamic instruments.

Commenting on the issuance, H.E Mohamed Abdalla, CEO of Sharjah Islamic Bank, said that capital market activities remain a key component of SIB’s long-term funding strategy, which has been successfully implemented since 2006. He noted that “this latest Sukuk demonstrates our ability to access global markets efficiently, even in challenging conditions, while maintaining prudent liquidity management. It also marks the Bank’s tenth senior unsecured Sukuk issuance, reinforcing our reputation as a consistent and trusted issuer. With this transaction, SIB now has three outstanding Sukuk, one maturing in 2029 and two in 2030. It is worth noting that this was SIB’s third foray into capital markets in 2025.”

HE Ahmed Saad, Deputy CEO of SIB, underscored that “despite the volatile market backdrop, strong demand from regional and international investors allowed us to tighten pricing by 30 bps from initial guidance. The successful outcome reflects investor confidence in SIB’s credit profile and our continued commitment to strategic execution.” He also expressed appreciation to the Joint Lead Managers and Bookrunners for their valuable contribution and seamless coordination, which helped secure high-quality institutional participation and further strengthen SIB’s presence in the global Sukuk market.