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Sharjah pumps AED 4bn liquidity to support banking system

Sharjah pumps AED 4bn liquidity to support banking system
Sharjah has issued AED 4 billion Sukuk

UAE - Mubasher: Sharjah Finance Department (SFD) has issued AED 4 billion Sukuk to enable the emirate's banks to provide financial support to the sectors impacted by coronavirus (COVID-19).

The 12-month AED-dominated Sukuk, representing the first rated short term local currency tradeable instrument in the UAE, was launched in several tranches, according to a press release on Tuesday.

In May, the first tranche of the Sharjah Liquidity Support Mechanism (SLSM) Sukuk was subscribed by Bank of Sharjah with AED 2 billion.

The SLSM Sukuk has a short term investment grade rating of A-2 by Standard & Poor’s rating agency.

The director-general of SFD, Waleed Al Sayegh, said: "This service will allow banks to use the Sukuk as security to access liquidity facilities at the UAE Central Bank, by following the required guidelines."