The Bank of Sharjah has acted as a joint lead manager and bookrunner in the successful issuance of a EUR500 million ($516.5 million), seven-year bond for the Government of Sharjah, collaborating with various international and regional banks.
The bond issuance attracted significant investor interest, with the order book achieving an oversubscription rate of 3.5 times. This robust demand from both international and regional investors underscores the global confidence in the creditworthiness of the Government of Sharjah.
The strong market appetite allowed the government to price the bond at a yield of 4.698 percent per annum, reflecting a notable tightening of 30 basis points from the Initial Price Thoughts (IPT).
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Global participation in the issuance
Interestingly, 71 percent of the total orders came from investors based in the UK, Europe, and the US offshore markets, highlighting Sharjah’s attractiveness to global capital markets.
Mohamed Khadiri, CEO of the Bank of Sharjah, remarked, “This issuance marks a key milestone in our continued collaboration with the Government of Sharjah to support the emirate’s economic growth and development objectives. It is also our first participation in a EUR-denominated issuance, further demonstrating our expertise in leading Debt Capital Markets transactions across multiple currencies.”
He further noted that the strong international investor participation is a testament to the confidence in Sharjah’s economic resilience and fiscal discipline.
Strengthening financial cooperation
Damian White, chief treasury officer at Bank of Sharjah, stated that this issuance represents a significant step in enhancing financial cooperation with the Sharjah government. He further emphasized that the proactive demand from global investors reflects the high value and appeal of these issuances.
He concluded by stating that the bank’s involvement not only addressed the government’s financing requirements but also highlighted the robustness of Sharjah’s economic foundations and the promising investment opportunities it presents.
