Page 9 - Al Tijarah - July 2020
P. 9

Sharjah Islamic Bank successfully issues

                               $500 million worth of Sukuk

                                                                              past few months.
         Sharjah Islamic Bank has successfully                                                                  49
         issued a $500 million (AED 1.83 billion)                             The orders received were from as many
         Sukuk with a five-year profit rate of 2.85%                          as 150 clients, with allocations of 47% to
         per annum, rated "A-" by Standard &                                  investors in  the MENA region,  39%  to
         Poor's, following a year of achievements                             Asia, 10% to Europe and 4% to USA.
         in expanding its investment and financing
         services, both in terms of individual and                            The joint lead managers and book runners
         corporate finance.
                                                                              on the issuance of the Sukuk were Bank
                                                                              ABC, Citi bank, Dubai Islamic Bank, First   SHARJAH ACTIVITIES
         This issuance is an important achievement                            Abu Dhabi Bank, Islamic Corporation for
         for Sharjah Islamic Bank, especially as the   to remain committed to our  local and   Development of  Private Sector,  Kuwait
         new Sukuk received strong demand from   international investors, who continue to   Finance House Capital, Mashreq Bank and
         local and international investors, reflecting   support our diverse funding strategy.”  Standard Chartered.
         the bank's strong position and reputation
         as a source of quality credit in the financial   He  further said  that  the  launch of the   Sharjah Islamic Bank (SIB) achieved net
         market and the confidence it enjoys in the   Sukuk  aligns  with the bank’s  plans and   profits totaling AED 153.7 million despite
         financial markets,  as the bank received   strategy, aimed at increasing  the bank’s   the  difficult economic challenges  due to
         underwriting  requests of  more than   capitalization rates in order  to enhance   Covid  19, a 1.3% increase compared
         $3.6 billion in the transaction closed on   future growth and strengthen the bank’s   to  AED 151.7  million last year, the
         Tuesday, June 16, which is 7.2 times the   financial position.  The  confidence of its   balance sheet reflects the bank’s  strong
         volume of issuance. The liquidity derived   dealers is visible considering their ability   performance and sound financial position
         from the issuance process will be used to   to stay strong on global ratings. This   with total assets reaching AED 49.3 billion
         enhance the bank's liquidity and growth,   strong financial position and the positive   at the end of March 2020, a 6.2% increase
         and  this is the eighth edition of  Sharjah   trend enabled SIB to obtain many local,   in comparison to AED 46.4 billion
         Islamic Bank during its distinguished Sukuk   regional and international awards in the   recorded at the end of 2019.
         issuance career, which was launched in
         2006, underscoring the bank's durability
         despite  any exceptional circumstances
         taking place on the global economy.

         HE Mohammed Abdullah, CEO of Sharjah
         Islamic  Bank, said that the  success  of
         this Sukuk is evidence of  the investors
         confidence in the solid position of the
         bank, 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 Mohamed Al Qasimi, Member of the
         Supreme Council and Ruler of Sharjah, to
         ensure financial stability. He expressed his
         delight with the results of this successful
         deal amid the challenging COVID-19
         pandemic,  adding: “We will continue
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