Sharjah: Sharjah Islamic Bank (SIB) has successfully priced US$ 500 million perpetual Additional Tier 1 sukuk with a fixed profit rate of 6.125 percent and a six-year non-call period, marking a significant achievement as the tightest set AT1 Issuance in 2025 globally.
According to Emirates News Agency, the issuance features a reset spread of 195.6 basis points, showcasing a reduction in the spread achieved in 2019 by 125.7 basis points. The issuance was met with robust demand, being oversubscribed by more than 2.0 times from a diverse group of investors across the GCC, Europe, and Asia, which reflects the high level of confidence that international financial institutions and investment funds have in the Bank.
This transaction further exemplifies the Bank's strategic use of capital markets as an effective tool to support its growth trajectory and strengthen its capital base. Mohamed Abdalla, CEO of Sharjah Islamic Bank, stated, "This latest sukuk issuance reflects the continued success of our strategy to leverage capital markets in supporting the SIB's financial position and long-term expansion. Since our first sukuk in 2006, we have built a solid track record as a trusted and consistent issuer in the global Islamic finance space. This marks our tenth sukuk issuance, reaffirming SIB's leadership in the international sukuk market."
The transaction attracted exceptional interest, far exceeding expectations, and secured demand from a highly diversified investor base. Ahmed Saad, Deputy CEO of Sharjah Islamic Bank, added, "The overwhelming interest from international investors in this issuance underscores growing trust in our performance, strategy, and future vision. The strong pricing outcome is a testament to SIB's position as a robust Islamic banking institution offering innovative, Sharia-compliant financial solutions and maintaining deep engagement with global investors."
This latest issuance builds on the Bank's successful track record in the sukuk space. In February 2025, SIB priced a US$500 million sukuk at a profit rate of 5.20 percent, representing a margin of 89.8 basis points over 5-year US Treasury notes. Despite market volatility, that deal attracted over US$1.7 billion in orders, more than 3.4 times the issuance size, with strong participation from investors across the Middle East, North Africa, Europe, and Asia.
The joint lead managers and bookrunners for the issuance were Arqaam Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Kamco Invest, Mashreq Bank, and Standard Chartered Bank. This transaction is part of a broader capital strategy aimed at strengthening SIB's capital structure, supporting business expansion across key markets while maintaining a commitment to financial governance, resilience, and sustainability.