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Sharjah Islamic Bank successfully completed the issuance of a $500 million five-year sukuk that drew orders worth $1.3 billion equivalent to 2.6 times the total issue size. The instrument was priced at a final yield of 5.85 percent or a spread of 105 basis points over five-year US Treasuries marking the bank’s thirteenth sukuk since it entered capital markets in 2006. According to a report from the Emirates News Agency the transaction reaffirms the lender’s presence in international sukuk markets and its track record across varying conditions.
The bank said the strong demand outcome reflects investor confidence in its financial performance and long-term strategy. Mohamed Abdalla CEO of Sharjah Islamic Bank noted that capital market activities are a key component of the lender’s funding strategy supporting its financing plans and strengthening its ability to achieve sustainable growth. “We continue to build on SIB’s presence in international capital markets supported by solid financial fundamentals and a disciplined approach to balance sheet and liquidity management. This strengthens our ability to achieve sustainable growth and maintain our position as a trusted issuer in international Sukuk markets” Abdalla added.
Ahmed Saad Deputy CEO of Sharjah Islamic Bank said the US$1.3 billion order book representing 2.6 times the issue size reflects strong investor demand for the issuance and confirms investors’ confidence in the bank and its ability to execute successful issuances in international capital markets. A report from Zawya indicated the order book exceeded $1.2 billion excluding joint lead manager interest allowing a 30 basis point tightening from initial price thoughts in the 135 basis points area. The sukuk issued by SIB Sukuk Company III with Sharjah Islamic Bank as obligor carries a periodic distribution rate of 5.85 percent at par.
Standard Chartered acted as bookrunner on the Reg S senior unsecured transaction which maintains an A- rating from S&P Global Ratings in line with the bank’s issuer rating. The notes are expected to list on Euronext Dublin and Nasdaq Dubai. Zawya reported that the bank last issued a similar $500 million five-year sukuk in November 2025 at a yield of 4.60 percent with an order book above $1.35 billion.
The latest issuance occurs as UAE banks maintain activity in debt capital markets with First Abu Dhabi Bank and Mashreq among those completing recent $500 million bond sales according to the same outlet. Sharjah Islamic Bank’s interim financial statements for the six months ended June 30 2026 placed its sukuk payable at 5.48 billion dirhams prior to this addition. The bank holds ratings of A- from S&P and BBB+ from Fitch Ratings.
