Sharjah has no plans to become a regular issuer for now despite drawing demand more than 10 times the value of its $750 million debut sukuk issue, Tom Koczwara, director of its debt management office said, according to Gulf Daily News.
Although it is developing its tourism and manufacturing industries, the third largest UAE member lacks the oil resources of Abu Dhabi and the commercial draw of neighbouring Dubai.
'We do not have any short-term plans to come back to capital markets,' Koczwara said. 'We structured this (the sukuk issue) as a standalone. The process has gone well ... so if it fits our strategy we are very confident we can do it in the future,' he said, noting there were no immediate plans to draft an issuance programme.
The government has yet to decide how it will use the proceeds but Koczwara said the aim was to refinance imminently maturing debt as well as legacy debt inconsistent with current pricing terms. Covering budget expenditures is another target. Some $1.3 billion worth of Sharjah's government debt will mature between 2014 and 2019 with $234.4m due in 2015, according to a presentation for investors.
'First two categories will have some impact on the level of 2015 maturities,' Koczwara said. About $7.85bn of orders poured in for the 10-year sukuk ijara from 250 investors on Wednesday. The issue priced at a yield of 3.764 per cent.
'We are delighted with the success of the issue. We met and exceeded all of our own targets,' Koczwara said.
Although it is developing its tourism and manufacturing industries, the third largest UAE member lacks the oil resources of Abu Dhabi and the commercial draw of neighbouring Dubai.
'We do not have any short-term plans to come back to capital markets,' Koczwara said. 'We structured this (the sukuk issue) as a standalone. The process has gone well ... so if it fits our strategy we are very confident we can do it in the future,' he said, noting there were no immediate plans to draft an issuance programme.
The government has yet to decide how it will use the proceeds but Koczwara said the aim was to refinance imminently maturing debt as well as legacy debt inconsistent with current pricing terms. Covering budget expenditures is another target. Some $1.3 billion worth of Sharjah's government debt will mature between 2014 and 2019 with $234.4m due in 2015, according to a presentation for investors.
'First two categories will have some impact on the level of 2015 maturities,' Koczwara said. About $7.85bn of orders poured in for the 10-year sukuk ijara from 250 investors on Wednesday. The issue priced at a yield of 3.764 per cent.
'We are delighted with the success of the issue. We met and exceeded all of our own targets,' Koczwara said.
Source:
Mubasher
