Search
Clear
Search
Warba Bank announced the successful issuance of Sharjah Islamic Bank’s USD 500 million Senior Unsecured Sukuk offering, which attracted large regional and global subscription. The Sukuk was issued at a fixed profit rate of 5.20%. The issuance was priced at a discount, with a reoffer price of 99.566% to yield 5.30%.
The Bank acted as Joint Lead Manager and Joint Bookrunner on the transaction alongside Abu Dhabi Islamic Bank, Ajman Bank, Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, HSBC, Mashreq Bank, Standard Chartered Bank, the Islamic Corporation for the Development of the Private Sector.
Books opened on Wednesday, February 19th, 2025, and closed on the same day, after receiving great interest from regional and international investors, and reaching USD 1.7 billion, three times the issuance size.
Warba Bank also announced the successful issuance of DAMAC Real Estate Development’s USD 750 million Senior unsecured Sukuk, which matures in three and a half years. The Sukuk was issued at a fixed profit rate of 7.00%. The transaction was jointly led by Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, Goldman Sachs International, HSBC, J.P. Morgan, Mashreq Bank and Warba Bank. The Sukuk were listed on the Global Exchange Market of Euronext Dublin.
The strong demand for DAMAC Sukuk was supported by its diverse allocation, which saw large participation from institutional investors across the globe. Banks, specifically private banks, acquired the largest share of 52% of the total issuance allocation, a clear indication of the banking sector's confidence in DAMAC’s credit profile. Fund Managers accounted for 43% of the total allocation, underscoring the increasing appetite in Sharia-compliant assets. Corporates, central banks and public institutions, in addition to insurance companies and pension funds collectively represented the remaining 5%, showing strategic interest in the Sukuk as it enables balance sheet management and diversification of assets.
As for geographic distribution, investors from the Middle East and North Africa region were the largest subscribers, accounting for 56% of the total issuance, followed by the United Kingdom, Europe, Asia and the Pacific, and lastly the United States.
Speaking of the issuance, Chief Investment Banking Officer at Warba Bank, Thuwaini Khaled Al-Thuwaini, said, “We have successfully closed the Sukuk issuance with a strong participation and confidence from markets. This clearly demonstrates the credibility of Warba Bank’s strategic vision, its contributions, and its remarkable success in completing this issuance, which not only reflects a solid offering but also serves as clear evidence of the market’s confidence and the growing diversity in the Sukuk sector.”
Al-Thuwaini emphasized the significance of Islamic financing tools and their role in strengthening global financial markets, a trend evidenced by growing international investor interest in subscribing to Sukuks recently issued by companies and banks in our region.
