Sharjah Islamic Bank (SIB) last week closed its second sukuk (Islamic bonds) worth $400 million. The sukuk due in 2016 was closed at a pricing of five-year US dollar mid-swap + 2.70 per cent translating into an annual profit rate of 4.715 per cent.
The issue was in massive demand with orders of $3.62 billion or 9.03x. With roadshows taking place in Abu Dhabi, Dubai, Singapore, Kuala Lumpur, ?Hong Kong and London, we saw enormous interest from institutional ?investors. Investors belonging to sovereign wealth funds, multilateral financial institutions, pension funds, fixed income funds, investment banks, hedge funds etc listened to the story SIB had to tell and then showed their interest in being a sukuk holder. In the end the number of orders received was more than 200. Allocating was a tough task where a delicate balance had to be struck between regional and international investors.
The process of launching this sukuk was a unique experience.
No comments:
Post a Comment