UAE: Bank of Sharjah prices $500mln senior unsecured bond

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Abu Dhabi: Bank of Sharjah has successfully priced a $500 million senior unsecured bond in the international markets, according to a press release.

The issuance received significant response from international investors, attracting orders valued at $1.40 billion, or almost 3x oversubscription.

The bonds hold a tenor of five years from the date of issuance, with a coupon of 5.25% annually. Following marketing activity in Dubai and London, the ADX-listed lender managed to tighten the pricing by 25 basis points from the initial price talk due to strong demand from global and regional investors.

Mohamed Khadiri, CEO of Bank of Sharjah, said: “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.”

Damian White, Head of Treasury at Bank of Sharjah, commented: “We set out with the goal of accessing a diverse group of investors, whilst also ensuring that the pricing reflected the turnaround in the Bank’s performance under its new strategy.”

In March, the bank led the issuance of a $750 million bond for the Government of Sharjah.

During the first half (H1) of 2024, Bank of Sharjah turned profitable at AED 170.97 million, against net losses valued at AED 143.87 million in H1-23.