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Bank of Sharjah plays key role in issuance of $750m dollar bond

SHARJAH, March 3, 2024

Bank of Sharjah, a leading commercial bank in the UAE, has acted as a joint lead manager and bookrunner in the successful issuance of a $750 million 12-year US dollar-denominated 144A/Reg S senior unsecured sustainable bond for Sharjah government alongside other international and regional banks.
 
The bond attracted significant investor interest, evidenced by an order book that exceeded $4 billion, showcasing the robust demand and confidence in the Government of Sharjah's credit story. 
 
The issuance was priced with a spread of 195 basis points over US Treasuries, significantly tighter than the initial guidance of 235 basis points, reflecting the strong appetite for the government's credit from the international investors (outside the region) representing 67% of total demand.
 
On the successful transaction, CEO Mohamed Khadiri said: "We are honoured to have played a pivotal role in this landmark bond issuance for the Government of Sharjah. Our involvement signifies Bank of Sharjah's commitment to facilitating strategic, high-quality capital market transactions in the Emirate of Sharjah and across the UAE."
 
Khadiri said: "The overwhelming response from investors leading to the tightening of the spread highlights the confidence in Sharjah’s credit and the effective structuring and marketing strategy employed by the Joint Lead Managers."
 
"This transaction not only reflects Sharjah’s prudent fiscal management and strong economic fundamentals but also underscores Bank of Sharjah’s expertise in capital markets and its ability to offer bespoke financing solutions and support important clients like the Government of Sharjah," he added.



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