Sharjah Islamic Bank (SIB) said on Sunday that it had raised $500 million through five-year sukuk amid strong investor demand, attracting an order book of $1.3 billion, representing 2.6 times the issue size.
The sukuk was priced at a final yield of 5.85 per cent, equivalent to a spread of 105 basis points over five-year US Treasuries, marking SIB’s 13th sukuk issuance since it entered the capital markets in 2006.
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Moody’s Ratings expects sukuk issuance to reach around $280 billion in full-year 2026, in line with 2025 levels, despite conflict and geopolitical uncertainty in the Middle East.
Issuance in the first half of 2026 increased slightly to around $130 billion. Record corporate-sector activity in H1 2026 and a sharp rise in short-term issuance compensated for a decline in long-term issuance by sovereigns and financial institutions.
Underlying demand for sukuk remains firm, while long-term global growth prospects are strong, supported by sovereign financing needs, bank funding diversification and rising appetite for Shariah-compliant financial products, although geopolitical risks continue to weigh on green and sustainable issuance.
Mohamed Abdalla, CEO of Sharjah Islamic Bank, said the issuance reflects investor confidence in the bank’s financial performance and long-term strategy.
He noted that capital market activities are a key component of SIB’s funding strategy, supporting its financing plans and strengthening its ability to achieve sustainable growth.
“We continue to build on SIB’s presence in international capital markets, supported by solid financial fundamentals and a disciplined approach to balance sheet and liquidity management. This strengthens our ability to achieve sustainable growth and maintain our position as a trusted issuer in international Sukuk markets,” he added.
Ahmed Saad, deputy CEO of Sharjah Islamic Bank, said the $1.3 billion order book, representing 2.6 times the issue size, reflects strong investor demand for the issuance and confirms investors’ confidence in the bank and its ability to execute successful issuances in international capital markets.
He added that the successful issuance strengthens the bank’s flexibility in managing its funding needs and diversifying its sources of liquidity, supporting its long-term growth plans.
Source: Khaleej Times