Post by : Bianca
Haleem
Ittihad International Investment LLC has successfully completed a $550 million issuance of a five-year senior unsecured Sukuk, spearheaded by Bank of Sharjah in collaboration with various regional and global banks. The offering attracted remarkable investor interest, with the order book surpassing $2 billion—over four times the amount issued.
The high demand enabled Ittihad International to enhance the pricing by 50 basis points to 7.375%, a significant improvement from initial projections, while also allowing the deal size to expand beyond the original expectations. This move signifies investors' heightened confidence in the firm's credit strength and its robust business framework.
This notable issuance follows the Group's recent upgrade in credit ratings by Fitch and S&P, which climbed from 'B+' to 'BB-', further stimulating market interest. The Sukuk received global attention, with 65% of investments coming from outside the MENA region, showcasing the issuer's widespread appeal.
This transaction continues Ittihad International's trajectory in the capital markets, following its inaugural Sukuk of $350 million in 2023, which managed to achieve superior pricing and wider investor involvement this time around. Analysts emphasize that such oversubscription highlights the UAE’s solid financial landscape and varied economy, drawing in both domestic and foreign investments.
With this latest Sukuk release, Ittihad International solidifies its financial foundation and enhances its market outreach, setting a new standard for corporate Sukuk ventures in the region.
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