Bank of Sharjah Facilitates Government’s $750M Bond Issuance 

In a significant move towards bolstering its financial standing, the Government of Sharjah has successfully issued bonds worth USD750 million. The issuance, facilitated by Bank of Sharjah as Joint Lead Manager and Bookrunner, marks a pivotal moment in Sharjah’s financial landscape. 

The U.S. dollar-denominated sustainable bonds, with a 12-year maturity period, received overwhelming response from investors, surpassing expectations with an order book exceeding USD4 billion. This robust demand underscores the confidence in the creditworthiness of the Government of Sharjah. 

The bonds were priced at a spread of 195 basis points over U.S. Treasuries, demonstrating strong investor appetite and trust in Sharjah’s economic fundamentals. Notably, international investors accounted for 67 percent of the total demand, reflecting the global appeal of Sharjah’s credit story. 

Mohamed Khadiri, CEO of Bank of Sharjah, expressed pride in the bank’s pivotal role in facilitating this landmark transaction. He highlighted the significance of Bank of Sharjah’s commitment to supporting strategic capital market transactions in Sharjah and across the UAE. 

Khadiri emphasized the confidence exhibited by investors, leading to the tightening of the spread, as a testament to Sharjah’s prudent fiscal management and economic strength. He underscored Bank of Sharjah’s expertise in capital markets and its ability to provide tailored financing solutions to esteemed clients like the Government of Sharjah. 

Looking ahead, Khadiri reaffirmed Bank of Sharjah’s dedication to offering sustainable financing solutions amid growing demand. He stressed the bank’s commitment to Environmental, Social, and Governance (ESG) principles, noting that successful deals like this one would encourage other entities to prioritize sustainability in their operations and investments. 

The issuance of these bonds not only strengthens Sharjah’s financial position but also aligns with its sustainability goals. Bank of Sharjah’s unwavering support for the Government of Sharjah in this endeavor reflects its commitment to driving positive change and fostering sustainable practices in the region’s financial landscape. 

Paul Afif serves as Head of Legal & Board of Directors Secretary at Bank of Sharjah.