Bank of Sharjah, together with international and regional banks, has served as a Joint Lead Manager and Bookrunner in the issuance of a 12-year U.S. dollar-denominated 144A/Reg S senior unsecured sustainable Bond worth $750 million for the Government of Sharjah.
The Bond has garnered substantial interest from investors, as evidenced by an order book exceeding $4 billion. This overwhelming response demonstrates the strong demand and confidence in the creditworthiness of the Government of Sharjah.
Read more: Sharjah to raise $1 billion in green sovereign bond
The issuance was priced at a spread of 195 basis points over U.S. Treasuries, which is significantly tighter than the initial guidance of 235 basis points. This indicates the high appetite among international investors (outside the region), who accounted for 67 percent of the total demand, for the government’s credit.
Mohamed Khadiri, CEO of Bank of Sharjah, said the Bank of Sharjah is dedicated to facilitating strategic and high-quality capital market transactions within Sharjah and the UAE.
Khadiri further highlighted the investor response, stating that the narrowing of the spread reflects the confidence in Sharjah’s credit and the effective structuring and marketing strategy employed by the Joint Lead Managers. He emphasized that this transaction not only showcases Sharjah’s prudent fiscal management and robust economic fundamentals but also demonstrates Bank of Sharjah’s expertise in capital markets and its ability to provide tailored financing solutions to important clients like the Government of Sharjah.
Khadiri reiterated Bank of Sharjah’s commitment to offering a dynamic range of sustainable financing solutions to meet the increasing demand from local and regional clients. He also believes that this successful deal underscores the bank’s dedication to environmental, social, and governance (ESG) principles and sustainable financing.
Bank of Sharjah takes pride in supporting the Government of Sharjah in its sustainability journey, he noted. The bank believes that these successful transactions will inspire other governments and corporations. It hopes that they will prioritize sustainable practices.
These financing solutions have the potential to act as catalysts. They can help align operations and investments with global sustainability standards. As a result, they can drive significant and positive change, Khadiri adde.d
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