Sharjah Sells USD 750 Million in 10-Year Sukuk to Shore Up Finances

The Emirate of Sharjah, in the United Arab Emirates (UAE), made its second international bond sale for 2021 on the 6th of July 2021, selling USD 750 million in 10-year Sukuk, in its efforts to shore up its finances on the back of COVID-19. According to media reports, the Islamic bonds were sold at 3.2% (tightened by 30 basis points from the initial price guidance), after the Sukuk brought in over USD 2.75 billion in orders.

Why it Matters?

The Sukuk was issued despite governments in the hydrocarbon-rich Gulf profiting from a resurgence in oil prices in 2021, with Brent crude trading at around USD 76 per barrel as of the 6th of July 2021, and the impact of COVID-19 reducing. The bond sale was required to plug the country’s deficit, which is exp...