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Bank of Sharjah issues USD 600 million five year maturity bonds in public international markets.

Published on : 22/ September /2019

Bank of Sharjah is pleased to announce the successful completion of a USD 600 million funding transaction through the issue of Fixed Rate Senior Unsecured Bonds, from its USD 1.5 billion Euro Medium Term Note Programme.

The bonds, carrying a coupon rate of 4.00%, and listed on the Irish Stock Exchange, mature on 18 September, 2024, and were issued at a spread of 250 basis points over mid swaps, following an intensive marketing roadshow to international fixed income fund investors, banks, pension funds and insurance companies in Abu Dhabi, Dubai, Hong Kong, Singapore and London. The order book reached USD 1.85 billion, with 109 investors participating in the final allocation.

The proceeds will be used to refinance the Bank’s existing USD 500 million bonds, maturing on 8 June 2020, and for general corporate financing purposes.

This transaction ranks among the largest fixed rate senior unsecured deals in the US Dollar public bond markets for a GCC bank during 2019, and marks Bank of Sharjah’s third public benchmark sized transaction since 2015.

To assist in executing the transaction, the Bank engaged the services of a deal management team composed of Joint Lead Managers Bank ABC, Emirates NBD Capital, First Abu Dhabi Bank, and JP Morgan Securities. Dentons & Co. and Allen & Overy LLP provided legal support, while Maples & Calder LLP and Bank of New York Mellon performed listing and payment roles.