Sharjah Islamic Bank (SIB) said its $500 million (Dh1.84 billio) sukuk was oversubscribed 3.2 times, garnering orders to the tune of $1.6 billion.

With a maturity of five years, the sukuk was priced at a spread of 185 basis points (bps) plus five-year mid-swaps, translating into a coupon of 3.084 per cent, the bank said in an emailed statement.

“The bank remains strong, under prudent management, and that is clearly reflected in the ratings and pricing of our transactions,” Mohammad Abdullah, chief executive officer of Sharjah Islamic Bank.

The bank was also successfully able to tighten by 20 bps, having announced IPTs at 205 bps plus five-year mid-swaps, due to strong demand from international and Middle Eastern investors.

The sukuk’s diverse geographical distribution was a key target of the issue. The Middle East getting 59 per cent while Asia, Europe and US Offshore getting 22, 16 and three per cent, respectively.

The bank was advised by HSBC and Standard Chartered as Joint Global Coordinators, with Bank ABC, Dubai Islamic Bank, ENBD Capital, HSBC, KFH Capital, Maybank, Noor Bank, QNB Capital and Standard Chartered Bank acting as bookrunners. Ajman Bank, Union National Bank, Warba Bank acted as the Co-Lead Managers.