New Issue: Sharjah sells $1 billion 10-year sukuk to yield mid-swaps plus 135 bps

By Rebecca Melvin

New York, March 6 – The government of the Emirate of Sharjah, acting through Sharjah Finance Department, priced a $1 billion 10-year sukuk, or Islamic bond (expected ratings: A3/BBB+), on Tuesday at par to yield mid-swaps plus 135 basis points, according to a market source.

Pricing of the Regulation S note, which has a distribution rate of 4.226%, came at the tight end of talk, which was guided to mid-swaps plus 135 bps to 140 bps from the mid-swaps plus 150 bps area initially. In addition, the tenor came at the long end of initial thoughts for a maturity of five, seven or 10 years.

HSBC was global coordinator and Dubai Islamic Bank, HSBC, Sharjah Islamic Bank and Standard Chartered Bank were joint lead managers of the senior unsecured notes.

Issuer:	Sharjah Finance Department
Guarantor:	Emirate of Sharjah
Issue:	Sukuk
Amount:	$1 billion
Maturity:	March 14, 2028
Bookrunners:	Dubai Islamic Bank, HSBC (global coordinator), Sharjah Islamic Bank and Standard Chartered Bank
Co-managers:	Abu Dhabi Commercial Bank, Bank of Sharjah, Noor Bank and United Arab Bank
Distribution rate:	4.226%
Price:	Par
Yield:	4.226%
Spread:	Mid-swaps plus 135 bps
Pricing date:	March 6
Settlement date:	March 14
Ratings:	Moody’s: A3
	S&P: BBB+
Distribution:	Regulation S
Price talk:	Mid-swaps plus 135 bps-140 bps, from mid-swaps plus 150 bps area

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