Today, Tuesday, a document showed that the Emirate of Sharjah set the initial indicative price for dollar-denominated bonds for ten years at about 3.5%.
A document issued by one of the banks participating in the process showed that Sharjah has appointed HSBC as a coordinator for the issuance, which is expected to be launched today, according to “Reuters”.
Abu Dhabi Islamic Bank, Dubai Islamic Bank, Sharjah Islamic Bank, Standard Chartered, and the Islamic Corporation for the Development of the Private Sector participate in the deal.
Bloomberg reported that Sharjah government chose investment banks To raise more than $750 million from a sukuk offering, driven by historically low funding costs and pressure on its finances.
This comes as the pace of debt offering accelerated at the Arab and international levels, before the meetings of the monetary policy committees of central banks globally during the summer, and to raise the returns on debt instruments to control the expected waves of inflation.
Qatar Petroleum raised $12.5 billion last week, the largest bond sale in emerging markets 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 degree of Sharjah’s debt with a stable outlook, and predicted that the general government net debt would remain below 60% of GDP until 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.