The government of Sharjah, acting through the Sharjah Finance Department, has begun the sale of 500 million euro ($541 million) 6.5 year sustainable bond on Wednesday under its Global Medium Term Note Programme.

HSBC, the stabilisation coordinator, said in a notice on the London Stock Exchange that the offer price for the issuance was to be decided. A Reuters report said the emirate has set initial price guidance for the 6.5-year debt deal at around 220 basis points (bps) over mid-swap.

IFR reported books had topped 1.5 billion euro by 11:00 am BST.

Use of proceeds will be to finance and/or refinance eligible expenditures as set out in the emirate's Sovereign Sustainable Financing Framework.

Credit Agricole CIB, HSBC, IMI Intesa Sanpaolo and J.P. Morgan are the joint global coordinators of the transaction.

HSBC is acting as the Sole Sustainability Structuring Agent.

(Writing by Brinda Darasha; editing by Seban Scaria)