Sharjah picks banks for dollar sukuk issue

Dubai: Sharjah has picked banks including HSBC and Sharjah Islamic Bank to arrange a US dollar-denominated sukuk issue, sources aware of the matter said on Monday. The banks include several international and local lenders, the sources said. The government of Sharjah and HSBC declined to comment, while Sharjah Islamic Bank did not immediately respond to a request for comment. Sharjah is not new to the debt capital markets. It issued $750 million (Dh2.75 billion) of 10-year sukuk in 2014 and $500 million of five-year sukuk in January last year.

The emirate last year hired HSBC to set up a sukuk programme. But it has also been looking at expanding its funding channels to finance its budget deficit. Earlier this year, it became the first Middle Eastern issuer to sell Panda bonds, a move aimed at raising the emirate’s profile among Chinese investors.