Bank of Sharjah issues EUR 500 million bonds for Sharjah govt

Bank of Sharjah has acted as a joint lead manager and bookrunner in the successful issuance of a €500 million, seven-year bond for the Government of Sharjah, alongside other international and regional banks.

The recent issuance by the Government of Sharjah saw remarkable investor demand, with the order book reaching an oversubscription of 3.5 times. This overwhelming interest from both international and regional investors underscores global confidence in Sharjah’s creditworthiness.

Competitive pricing and yield
Thanks to the robust market appetite, the government was able to price the issuance at a yield of 4.698 percent per annum, representing a significant tightening of 30 basis points from the Initial Price Thoughts (IPT). This favorable pricing reflects strong investor interest and market conditions.

Geographic distribution of orders
Notably, 71 percent of total orders came from investors in the UK, Europe, and US offshore markets, highlighting Sharjah’s appeal to global capital markets. This geographic diversity in investor participation showcases the emirate’s international attractiveness.

Statements from Bank of Sharjah executives
Mohamed Khadiri, CEO of the Bank of Sharjah, emphasized that this issuance marks a key milestone in collaboration with the Government of Sharjah to support economic growth. He noted it was the bank’s first participation in a EUR-denominated issuance, showcasing their expertise in leading Debt Capital Markets transactions across multiple currencies.

Damian White, Chief Treasury Officer at Bank of Sharjah, remarked that the issuance strengthens financial cooperation with the Sharjah government. He highlighted the proactive demand from global investors as a reflection of the high value and attractiveness of these issuances, affirming Sharjah’s economic resilience and the promising investment opportunities it presents.