Bank of Sharjah has played a key role as Joint Lead Manager and Bookrunner in the successful issuance of a US$550 million five-year senior unsecured Sukuk for Ittihad International Investment LLC, collaborating with other global and regional banks.
The transaction experienced remarkable investor interest, with the order book oversubscribed by over four times, reaching $2 billion. This strong demand highlights the trust of both regional and international investors in Ittihad International’s creditworthiness and robust business model.
The Group’s recent credit rating upgrade by Fitch and S&P from “B+” to “BB-” further enhanced market interest, demonstrating its strong financial performance and solid fundamentals.
Initially proposed as a benchmark-sized deal, the significant investor demand allowed the issuer to tighten pricing by 50 basis points to 7.375 percent from the initial guidance, while increasing the deal size to US$550 million.
Mohamed Khadiri, CEO of Bank of Sharjah, stated, “Following Ittihad International’s successful debut Sukuk issuance of USD 350 million in 2023, this new transaction represents another major milestone for the Group. The company was able to increase the issuance size, secure a notably lower coupon, and attract robust international participation, with 65% of allocations made to investors outside the MENA region.”
He added, “Bank of Sharjah’s involvement in this transaction underscores our ongoing commitment to aiding UAE corporates in meeting their funding goals through well-structured financing and capital market solutions. We are proud to contribute to initiatives that expand market access and reinforce the UAE’s status as a premier financial hub.”
Damian White, Chief Treasury Officer at Bank of Sharjah, remarked, “We are thrilled to have been part of Ittihad International’s Sukuk issuance. The outcome underscores the success of a well-executed distribution strategy, the issuer’s improved credit fundamentals, and the sustained investor confidence in the UAE’s resilient and diversified economic landscape.”
