Dubai: Sharjah Islamic Bank listed its Dh1.48 billion sukuk on Nasdaq Dubai, bringing the total sukuk listings to $28.96 billion on the exchange.
The transaction was oversubscribed by 7.2 times, receiving around 120 orders amounting to $3.6 billion, Nasdaq Dubai said in a statement.
The 5-year notes were priced at a profit rate of 2.843 per cent or 110 bps above prevailing 5-year Mid Swaps.
“Given the overwhelming demand for SIB’s credit globally, the bank was able to tap the market for $500 million issuance at a very attractive pricing and geographical mix with strong participation from Europe, Far East and the Middle East,” said Ahmed Saad, Deputy Chief Executive Officer of Sharjah Islamic Bank in a statement.
Banks and financial institutions received the lion’s share of the Sukuk offering, with 59 per cent, followed by fund managers and hedge funds with 33 per cent, supranationals and central banks with 6 per cent, and others with 2 per cent.
Around 63 per cent of investors were from the Middle East, 23 per cent from Asia and 14 per cent from Europe.
Global sukuk issuance is expected to remain resilient in 2015 at about $100 billion to $120 billion, according to RAM Ratings.
