Sharjah Islamic Bank Gears Up for U. S. Dollar Sukuk Offering

Sharjah Islamic Bank (SIB) is prepping to raise capital through a five-year issuance of sukuk, according to a document disclosed by an arranging bank. The Islamic lender has enlisted Standard Chartered Bank, Emirates NBD Capital, and HSBC as joint global coordinators for the offering.

Investor meetings are scheduled to commence today, June 24th, paving the way for a benchmark-sized sale of senior sukuk denominated in U. S. dollars. This issuance falls under SIB's pre-established $3 billion trust certificate issuance program.

The document specifies that the sukuk will have a five-year maturity. This strategic selection aligns with SIB's goal of securing medium-term financing to potentially fund ongoing operations and investments.

For the debt deal, SIB has secured the services of a consortium of prominent financial institutions. Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Bank ABC, Dubai Islamic Bank, First Abu Dhabi Bank, Mashreq, and QNB Capital will all serve as joint lead managers and bookrunners.

This planned sukuk offering signifies Sharjah Islamic Bank's confidence in the regional Islamic finance market. Sukuk, which are sharia-compliant financial instruments, offer an alternative to conventional bonds by structuring the transaction around asset ownership rather than debt.

The participation of a diverse group of banks as joint lead managers and bookrunners underscores the anticipated strong investor interest in the sukuk. The combined expertise and reach of these institutions will be instrumental in ensuring a successful issuance for SIB.

The size of the sukuk offering is designated as "benchmark-sized, " indicating a significant issuance value within the Islamic finance market. This suggests that SIB is seeking to raise a substantial amount of capital through this sukuk sale.

Financial details regarding the profit rate offered on the sukuk are not yet publicly available. However, with investor meetings commencing today, this information is likely to be revealed in the near future.

The proceeds generated from the sukuk issuance will bolster SIB's financial strength and liquidity. This capital injection can be used to fuel the bank's growth strategies and support its overall business objectives.

Sharjah Islamic Bank's foray into the sukuk market reflects a broader trend within the Islamic finance sector. As the demand for sharia-compliant financial instruments continues to rise, sukuk issuances are expected to play an increasingly prominent role in the regional financial landscape.

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