The Emirate of Sharjah has set the initial indicative price for ten-year dollar-denominated sukuk at around 3.5%.
According to Arabia Net, a document issued by one of the banks involved in the operation showed that Sharjah has appointed HSBC as a coordinator for the issuance, which is expected to be launched today. According to Reuters.
The deal will involve Abu Dhabi Islamic Bank, Dubai Islamic Bank, Sharjah Islamic Bank, Standard Chartered, and the Islamic Corporation for the Development of the Private Sector.
Bloomberg has reported that the Sharjah government has selected investment banks to raise more than $750 million from a sukuk offering, driven by historically low funding costs and with their finances under pressure.
This comes as the pace of debt offering accelerated in the Arab world and globally, before the meetings of the monetary policy committees of central banks globally during the summer, and raising the returns on debt instruments to control waves Expected inflation.
Qatar Petroleum raised $12.5 billion last week, in the largest emerging market bond sale this year. In recent weeks, Saudi Aramco raised $6 billion in a 3-tranche bond offering, while Turkey, Kenya and Oman also benefited from the debt market.
Standard & Poor's confirmed in April the debt rating of the Emirate of Sharjah with a stable outlook, and predicted that the net general government debt would remain below 60% of GDP to In 2024, even with a large fiscal deficit.
Standard & Poor's also expected economic growth in Sharjah to rebound by 4% this year after a contraction of about 10% in 2020.
