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Sharjah launches new dollar-dominated Sukuk

Sharjah launches new dollar-dominated Sukuk
HSBC was hired as global coordinator for the transaction

UAE - Mubasher: Sharjah began on Tuesday marketing seven-year US dollar-dominated Sukuk, Reuters reported citing a document from one of the banks arranging the deal.

Sharjah has set an initial indicative price of about 275 basis points over the average fixed and variable interest rate swaps for the Sukuk.

The issuance of the US dollar-dominated Sukuk came as the Gulf region seeks to face the economic consequences of coronavirus (COVID-19) and the cut in oil prices.

The Sukuk would likely be issued at a total value between $750 million and $1 billion.

HSBC was hired as global coordinator for the transaction, with Bank ABC, Dubai Islamic Bank (DIB), Gulf International Bank, Mashreqbank, and Sharjah Islamic Bank to be on the deal.

It is noteworthy to mention that in May, Sharjah issued a AED 2 billion ($544.54 million) one-year Sukuk to support its economy from the impacts of the COVID-19 pandemic.