In the global markets, Bank of Sharjah set the price of a $500 million senior unsecured bond. International investors responded incredibly well to the issuance, with orders reaching a peak of US$1.4 billion, or nearly three times oversubscription. The bonds have a five-year tenor from the date of issuance and a 5.25% annual coupon.
Due to strong demand from both international and regional investors, the bank successfully tightened the pricing by 25 basis points from the initial price talk after engaging in marketing activities that included global investor calls and a physical roadshow in Dubai and London.
The bank’s capacity to negotiate favourable terms in the capital markets is demonstrated by this new issue. “Despite a period of heightened volatility, driven by various economic and geopolitical factors, we were able to secure significant investor interest, reflecting strong confidence in our new strategy and the bank’s financial stability and growth,” said Mohamed Khadiri, CEO of Bank of Sharjah, in response to the deal’s successful completion.
“This new bond issue marks an important milestone in the transformation of Bank of Sharjah,” stated Damian White, Head of Treasury at Bank of Sharjah. Our objectives were to reach out to a wide range of investors and make sure that the pricing took into account the bank’s newfound success under its new plan. The final pricing established a strong foundation for upcoming issuances and compared favourably to previous deals.
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