Shar­jah Is­lamic Bank re­pays $400m sukuk

The Pak Banker - - FRONT PAGE -

SHAR­JAH: Shar­jah Is­lamic Bank (SIB), a Sharia-com­pli­ant com­mer­cial bank in the UAE, has suc­cess­fully re­paid a $400 mil­lion (Dh1.46 bil­lion) sukuk. The sukuk had been is­sued in May 2011 with the fund used for gen­eral cor­po­rate pur­poses and busi­ness ex­pan­sion of SIB.

Ahmad Sa'ad, Deputy CEO of SIB, said the bank's liq­uid­ity re­mains strong and the qual­ity of the banks as­sets are in line with peers. Ac­cord­ing to a state­ment on Satur­day, SIB chose to repay the sukuk through its in­ter­nal sources, which was ev­i­dence of the banks "ex­cel­lent liq­uid­ity po­si­tion." SIB holds an A3 grade rat­ing from Moody's and BBB+ by S&P and Fitch Rat­ings.

Mo­ham­mad Ab­dul­lah, CEO of SIB, thanked in­vestors for their trust in SIB. "SIB be­lieves that the cap­i­tal mar­kets to be an op­por­tu­nity for growth for Is­lamic Banks and we, at SIB, would look to tap the mar­kets at ap­pro­pri­ate times. Sukuk al­low us to di­ver­sify our fund­ing sources and en­gage with in­vestors on var­i­ous op­por­tu­ni­ties," he said.

SIB cur­rently has two Sukuk of $500 mil­lion out­stand­ing, which are set to ma­ture in 2018 and 2020 re­spec­tively.

SIB is the largest bank in the emi­rate of Shar­jah and has a 31.3 per cent share­hold­ing by the Gov­ern­ment of Shar­jah and 20 per cent by Kuwait Fi­nance House with the bal­ance held by the pub­lic. As of March 31, 2016, SIB posted a 22.9 per cent year-on-year in­crease to at­tain a net profit of Dh131.9 mil­lion with to­tal as­sets at Dh30.15 bil­lion and share­hold­ers' eq­uity at Dh4.6 bil­lion.

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