Bank of Sharjah raises $600mln in five-year bonds

Abu Dhabi – Mubasher: Bank of Sharjah, listed on the Abu Dhabi Securities Exchange (ADX), announced it has issued Fixed Rate Senior Unsecured Bonds worth $600 million under its $1.5 billion Euro Medium Term Note Programme.

The bonds, listed on the Irish Stock Exchange, has a coupon rate of 4% and a maturity date on 18 September 2024, according to a press release.

Moreover, the bonds were issued at a spread of 250 basis points over mid-swaps, Bank of Sharjah said.

The transaction has received $1.85 billion in order book, with 109 investors taking part in the final allocation, the bank noted.

The proceeds of the issuance will be used to refund the bank’s existing $500 million bonds, maturing on 8 June 2020, the bank pointing out, adding that it will be also used for general corporate financing purposes.

“The transaction ranks among the largest fixed rate senior unsecured deals in the US dollar public bond markets for GCC banks during 2019, and marks Bank of Sharjah’s third public benchmark sized transaction since 2015,” the release said.

Bank ABC, Emirates NBD Capital, First Abu Dhabi Bank (FAB), and JP Morgan Securities acted as the transaction’s joint lead managers, while Dentons & Co and Overy LLP provided legal support.

Maples & Calder LLP and Bank of New York Mellon were in charge of conducting listing and payment roles.

The funding transaction was successfully completed following a marketing roadshow to international fixed income fund investors, banks, pension funds, and insurance companies in Abu Dhabi, Dubai, Hong Kong, Singapore, and London, the ADX-listed bank highlighted.