(WAM) — Sharjah Islamic Bank (SIB) priced a $500 million (AED1.83 billion) long 5-year sukuk, with a profit rate of 2.85 percent per annum, fetching it an A- rating by S&P.

Some of the other achievements of the bank during the year include, expansion of its investment and financial services in the area of individual or corporate financing.

SIB was able to generate significant momentum from international and regional investors with the order books reaching a high of $3.6 billion, 7.2x times greater than the issuance for the deal closed on June 16, and the liquidity obtained from this issuance process will be used to enhance SIB’s liquidity and business growth.

This is SIB’s eight Sukuk issuance after launching it’s first Sukuk in 2006. This confirms the bank’s credibility despite the current exceptional circumstances.

Mohammed Abdullah, CEO of Sharjah Islamic Bank, said: “The success of this Sukuk is evidence of an investor’s confidence in the solid foundation of SIB, and their belief in the growing economy of the emirate of Sharjah and UAE in general, that aligns with the vision of His Highness Sheikh Dr Sultan bin Muhammad Al Qasimi, Member of the Supreme Council and Ruler of Sharjah. We are delighted with the results of this successful deal which have been achieved amid the challenging COVID-19 pandemic. We will continue to remain committed to our local and international investors, those who have faith and continue to support our diverse funding strategy.”

He further added that the launch of the sukuk aligns with the bank’s plans and strategy, aimed at increasing the bank’s capitalization rates in order to enhance future growth and strengthen the bank’s financial position. The confidence of its dealers is visible considering their ability to stay strong on global ratings. This strong financial position and the positive trend has enabled SIB to obtain many local, regional and international awards in the past.

The orders received were from as many as 150 clients, and the bank recorded excellent geographical diversification with allocations of 47% to investors in the MENA region, 39% to Asia, 10% to Europe and 4% to US offshore.

The joint lead managers and book runners on the issuance of the Sukuk were Bank ABC, Citi, Dubai Islamic Bank, First Abu Dhabi Bank, Islamic Corporation for Development of Private Sector, KFH Capital, Mashreq and Standard Chartered.