Sharjah issues $750M sustainable bond successfully
Bank of Sharjah serves as a joint lead manager and bookrunner
The Government of Sharjah has achieved a significant milestone by successfully issuing a $750 million 12-year US dollar-denominated 144A/Reg S senior unsecured sustainable bond. This issuance underscores Sharjah’s commitment to sustainable financing and highlights the confidence of investors in the government’s credit story.
The bond issuance received overwhelming investor interest, with an order book exceeding $4 billion, indicating robust demand and confidence in the creditworthiness of the Government of Sharjah. The pricing of the issuance, with a spread of 195 basis points over US Treasuries, tightened significantly from the initial guidance of 235 basis points, reflecting strong investor appetite, especially from international investors outside the region, who accounted for 67 percent of total demand.
Bank of Sharjah, a leading commercial bank in the UAE, played a pivotal role as a joint lead manager and bookrunner in the successful issuance of the bond, collaborating with other international and regional banks.
Mohamed Khadiri, CEO of Bank of Sharjah, expressed pride in the bank’s involvement in this landmark bond issuance, emphasizing its commitment to facilitating strategic capital market transactions in Sharjah and across the UAE. He highlighted the overwhelming response from investors, which led to the tightening of the spread, showcasing confidence in Sharjah’s credit and the effective structuring and marketing strategy employed by the joint lead managers.
Khadiri reiterated Bank of Sharjah’s dedication to providing sustainable financing solutions amid increasing demand from local and regional clients. He emphasized the bank’s commitment to environmental, social, and governance (ESG) principles and sustainable financing, noting that such successful deals encourage governments and corporates to prioritize sustainable practices.
This successful 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 tailored financing solutions to support key clients like the Government of Sharjah. The bank remains committed to driving positive change and aligning operations with global sustainability benchmarks through impactful financing solutions.
