Sharjah Update Sharjah business & Investment News from Invest in Sharjah (Sharjah FDI Office)
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Bank of Sharjah P.J.S.C. (BOS:ADX), Sharjah’s second biggest bank by net assets, has announced the completion of a senior five-year unsecured fixed-rate notes issue totaling US$ 500 million (AED 1.84b), under the bank’s new Euro Medium Term Note (EMTN) programme. Pricing was set at 250 basis points over mid-swaps (a benchmark for calculating bids) to yield at 4.23 percent.
Bank of Sharjah’s new Euro Medium Term Note (EMTN) Programme, which is listed on the Irish Stock Exchange, received a long-term rating of ‘BBB+’ and short-term rating of ‘F2’ from Fitch Ratings in January (ratings only applicable to a senior issue).
EMTN programmes require fixed payments and mature in five years or less. Unlike conventional bonds, EMTNs are offered on a continuous basis, allowing multiple issues under the same paperwork. Several other UAE banks also have their own EMTN programmes including Emirates NBD and National Bank of Abu Dhabi.
According to a statement by Bank of Sharjah, the EMTN issue was 3.8 times oversubscribed with a maximum book value reaching a total of US$ 1.9 billion (AED 6.97b) in bids, reflecting strong investor interest. The bank carried out a marketing roadshow targeting London, Singapore and Hong Kong, in addition to the United Arab Emirates. The notes were sold to a diversified investor base from Asia, Europe and the GCC.
The EMTN issue was jointly lead-managed by Bank ABC, Emirates NBD Capital, Securities plc (DIFC) and National Bank of Abu Dhabi. According to Bank of Sharjah, the transaction settles on 7th March 2017 and the notes mature on 7th March 2022.
Bank of Sharjah secured shareholder approval last year to issue bonds worth up to US$1.5 billion (AED 5.51b) for general corporate purposes. The bank issued its first international bond in May 2015, a conventional US$ 500 million (AED 1.84b) senior unsecured bond, receiving a Fitch credit rating of BBB+(EXP).
Source: Bank of Sharjah, WAM
