Sharjah Islamic Bank’s (SIB) $500 million Sukuk received the ‘Sukuk Deal of the Year 2020’, at the 10th Global Islamic Finance Awards (GIFA). The bank was acknowledged with the award, during a virtual ceremony held on September 14.
SIB, which enjoys strong investment grade ratings of A- by Standard & Poors, A3 by Moody’s, priced a $500 million (AED 1.83 billion) 5-year Sukuk, with a profit rate of 2.85 per cent per annum. The prestigious award is another achievement for the bank, especially after they have successfully expanded their investment and financing services across individual and corporate financing during the year.
The bank was able to generate significant momentum from regional and international investors, reflecting strongly on their reputation as a source of quality credit in the financial markets. The bank received an overwhelming response of over $3.6 billion, 7.2 times greater than the issuance for the deal closed on 16 June 2020. The funds raised from this issuance process will be used to for SIB’s General corporate purposes.
Mohamed Abdalla, CEO of Sharjah Islamic Bank, said: “We are delighted to be recognized at the Global Islamic Finance Awards, which is a testimony of the bank’s successful implementation of its policies. The Sukuk has achieved the best pricing globally, having competed with some of the largest traditional and Islamic banking institutions. This in turn has further helped strengthen the basic and total capital ratios of the bank, which will help achieve the targeted growth rate in the coming years.”
He added: “This is SIB’s 8th Sukuk issuance after launching its first Sukuk in 2006, confirming the bank’s credibility despite the current exceptional circumstances. This award also contributes to enhancing the image of the bank across global financial markets and provider of strong financial tools. The award helps us strengthen our profile both as a regular issuer, providing a financial instrument which is investment grade in nature as well as generating enhanced opportunity for future business.”
Courtesy of its commitment to adopting the best practices and the latest regulations in the world of finance and business, SIB has won several local, regional and international awards over the years that prove the bank’s excellence and leadership.—Agencies