Bank of Sharjah has acted as Joint Lead Manager and Bookrunner for Ittihad International Investment LLC’s US$550 million five-year senior unsecured Sukuk, in collaboration with leading regional and global financial institutions. The issuance reflects growing investor confidence in both Ittihad International’s performance and the UAE’s capital markets.
Strong Investor Demand and Optimised Pricing
The Sukuk attracted exceptional investor demand, with the order book oversubscribed more than four times to reach US$2 billion. This strong response demonstrates the market’s trust in Ittihad International’s credit strength and business strategy. The company’s recent credit rating upgrade by Fitch and S&P from “B+” to “BB-” further reinforced this sentiment, reflecting its solid fundamentals and consistent growth.
Initially marketed as a benchmark-sized deal, the robust demand allowed the issuer to tighten pricing by 50 basis points — from initial guidance to 7.375 percent — while increasing the total issue size to US$550 million. This outcome highlights both the deal’s success and the deep liquidity available in regional and international debt markets.
Commitment to Market Development
Mohamed Khadiri, CEO of Bank of Sharjah, said, “Following Ittihad International’s successful debut Sukuk issuance of USD 350 million in 2023, this new transaction marks another significant achievement for the Group. The company was able to upsize the issuance, achieve a notably lower coupon, and attract strong international participation, with 65% of allocations made to investors outside the MENA region.”
He added that the bank’s involvement demonstrates its ongoing commitment to supporting UAE corporates in meeting funding objectives through structured capital market solutions. “We are proud to contribute to initiatives that deepen market access and reinforce the UAE’s position as a leading financial center,” he said.
Damian White, Chief Treasury Officer at Bank of Sharjah, noted, “We are delighted to have been part of Ittihad International’s Sukuk issuance. The outcome highlights the success of a well-executed distribution strategy, the issuer’s strengthened credit fundamentals, and the continued investor confidence in the UAE’s resilient and diversified economic outlook.”
