May 17 2011
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Sharjah Islamic Bank Sukuk issuance receives huge response
Sharjah, 17 May 2011 - The road shows launched last week by Sharjah Islamic Bank ( SIB ) to mark the Bank's Sukuk issuance have been a resounding success, according to Bank CEO HE Mohammed Abdullah. The issuance of the US dollar-denominated Sukuk (Islamic bonds) is expected to close today (Wednesday 18 May 2011), and be listed on the London Stock Exchange.
The CEO's remarks followed meetings between SIB management and investors, including investment portfolios, finance companies and banks in the Middle East, Asia and Europe, where the Sukuk issuance received a great response.
The value of the Sukuk will be announced right after subscription closes on Wednesday.
Saad explained that the road shows - which have been undertaken by the Bank's team, including Saeed Al Amiri, Head of Investment Group, and Anver Jalaldeen, Head of Capital Investment, as well as representatives from joint lead managers HSBC and Standard Chartered - were launched in Abu Dhabi and Dubai, from where they travelled to Asia, including Singapore, Kuala Lumpur, and Hong Kong during the first week of the promotion, moving on to the final leg of the tour in Europe this week and holding several meetings in London.
Saad also stated that the volume and value of the Sukuk issuance will be determined by SIB 's joint lead managers after the completion of the road shows and the closing of the subscription today (Wednesday).
"The positive response to the road shows has exceeded our expectations, but at the same time it is normal and well-matched to the financial strength of the bank, which was one of the first banks to have its rating raised by Standard & Poor's Ratings Services during the global financial crisis. This positive response reflects SIB 's strong performance and our ability to generate profits, based on a combination of our solid financial position in the market, adequate capital, and good financing and liquidity standards, in addition to our conservative policy, which is guaranteed to safeguard the rights of our shareholders and clients," the Deputy CEO added.
This is the second Sukuk issuance from Sharjah Islamic Bank , after its first successful issuance in 2006.
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 centres.
Sharjah Islamic Bank , formerly known as National Bank of Sharjah, was founded by an Emiri 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.
© Press Release 2011
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