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Nasdaq Dubai listing for US$500m SIB sukuk

Sharjah Islamic Bank CEO Mohammed Abdulla rang the opening bell at Nasdaq Dubai on Sunday to celebrate the listing of US$500 million (AED 1.84 b) sukuk on the exchange. It is the second sukuk to be listed by Sharjah Islamic Bank (SIB) on Nasdaq Dubai , following a US$ 500 million listing in April 2013. Global sukuk issuance is expected to remain resilient in 2015 at about 100 billion to 120 billion US dollars, according to global credit ratings service RAM Ratings.

SIB issued the unsecured 5-year Islamic bond or sukuk during March of this year, which, according to the bank, was oversubscribed by more than seven times. The bank listed the US$ 500 million Sukuk on the exchange on April 2, 2015.

SIB’s 2015 sukuk’s 5-year notes were priced at a profit rate of 2.843 percent or 110 bps (basis points) over prevailing 5-year mid-swaps (a benchmark for calculating bids). Banks and financial institutions were issued 59 percent of the bond, followed by fund managers and hedge funds with 33%, supranationals and central banks with 6%, and others with 2%. Around 63% of investors were from the Middle East, 23% from Asia and 14% from Europe .

The bell-ringing ceremony was attended by His Excellency Essa Kazim, Governor of Dubai International Financial Centre (DIFC), Secretary General of Dubai Islamic Economy Development Centre (DIEDC) and Chairman of DFM ; Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai ; Hamed Ali, Chief Executive of Nasdaq Dubai ; Ahmed Saad, Deputy Chief Executive Officer of Sharjah Islamic Bank; and Saeed Al Amiri, Head of Investment Group of Sharjah Islamic Bank.

Sharjah Islamic Bank issued its first successful Islamic bond in 2006 and has positioned itself as an Islamic banking leader with a growing portfolio of Shari’ah-compliant banking products.

SIB is 30% owned by the government of Sharjah.

Source: SIB

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