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Sharjah Islamic Bank announces Sukuk issuance

HE Mohammed Abdullah, CEO of Sharjah Islamic Bank ( SIB ) has revealed that the Bank is gearing up to issue Islamic bonds (Sukuk) that will be soon listed on the London Stock Exchange. The volume and value of the issuance are both subject to market conditions, and will be determined after the completion of the road shows taking place in the Middle East, Asia and Europe that were officially launched yesterday (Monday) in Abu Dhabi and Dubai. The value of the Sukuk will be announced after subscription has closed.

SIB is rated BBB+ with stable outlook by Standard & Poor's Ratings Services and by Fitch. The Bank has appointed HSBC and Standard Chartered as joint lead managers to issue US dollar-denominated Sukuk. The Sukuk issuance was approved by the SIB 's Extraordinary General Assembly.

Speaking of the decision to issue Sukuk, CEO Abdullah clarified: "Sukuk issuance will support SIB 's strategic business expansion plan. Our rating from Fitch and from Standard & Poor's reflects SIB 's strong performance and our ability to generate profits, based on a solid financial position in the market, adequate capital, and good financing and liquidity standards, in addition to our conservative policy that is guaranteed to safeguard the rights of our shareholders and clients, alike. In the nearly three years since the economic crisis, SIB has focused on cushioning the impact of the crisis and on maintaining a positive growth rate, in accordance with the Board's strategy".

During the launch ceremony for the road show, supervised by SIB senior management, investors expressed their confidence in the rewarding investment potential of this Sukuk, which will enhance SIB 's financial position as well as its ability to seize promising opportunities in the market and achieve future growth. This is all part of the Bank's strategic plan, which aims to strengthen SIB 's presence on the banking, financial and investment landscape through geographical expansion, enhanced electronic platforms, and the launch of more programmes that meet the demands of both individual clients and the market.

Since its successful transition from conventional to Islamic banking in 2002, Sharjah Islamic Bank has offered a variety of Shari'a-compliant products that cater to the needs of individuals, companies, institutions, as well as investment and international banking services. As a result of well considered strategies and careful planning based on risk management and cost control, SIB has seen unprecedented growth. The bank currently has 24 branches located across the UAE, in addition to more than 100 ATM and deposit machines installed in residential districts and other vital areas such as shopping malls and entertainment centers.

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About SIB
Sharjah Islamic Bank , formerly known as National Bank of Sharjah, was founded by an Amiri decree issued by H.H. Dr. Sultan Bin Mohammed Al Qassimi, Member of the Supreme Council, and Ruler of Sharjah, to provide commercial banking services to firms and individuals. Originally a conventional bank, Sharjah Islamic Bank became the first in the world to convert successfully to Islamic banking in 2002. Since then, all operating systems and procedures have been modified to facilitate this conversion and all employees trained in Islamic banking.

For more information, please contact:
Serine Srouji
SAHARA Communications
Tel: +971 4 3298996
Fax: +971 4 3298995
Mob: +971 50 3286188
Email: serin@saharagcc.com
Website: www.saharagcc.com

© Press Release 2011