Dubai: The emirate of Sharjah set initial price guidance in the area of 120 basis points over midswaps for its benchmark-sized debut sovereign sukuk issue, a document from lead managers said on Tuesday.
The guidance follows initial pricing thoughts of “low to mid-100s” over midswaps earlier on Tuesday.
Investor orders worth around $4 billion have so far been placed for the sukuk issue, which has an ijara structure.
The issue is due to price on Wednesday. Benchmark size is usually understood to be worth upwards of $500 million.
Sharjah, rated A/A3 by Standard and Poor’s and Moody’s Investors Service, earlier appointed HSBC, Kuwait Finance House, National Bank of Abu Dhabi, Sharjah Islamic Bank and Standard Chartered to arrange roadshows, which ends on Tuesday.
