Ittihad International Secures $550M Through Significant Sukuk Issuance

Post by : Bianca Suleiman

Ittihad International Investment LLC has triumphantly secured $550 million via a five-year senior unsecured Sukuk, orchestrated by Bank of Sharjah along with various regional and global banking institutions. The offering experienced exceptional interest, with the order book surpassing $2 billion, quadrupling the size of the issuance.

Such strong demand enabled Ittihad International to enhance its pricing by 50 basis points to 7.375%, refining the terms from initial projections, while scaling up the deal size beyond its original target. This reflects the rising investor confidence in the firm’s creditworthiness and its resilient operational framework.

This noteworthy issuance follows the Group's latest credit rating elevation by Fitch and S&P, upgrading from “B+” to “BB-,” which in turn increased market enthusiasm. The Sukuk drew in a worldwide investor pool, with 65% of the allocations directed to participants outside the MENA region, indicating the issuer’s global allure.

This transaction underscores Ittihad International's ongoing progress within the capital markets, succeeding its inaugural Sukuk of $350 million in 2023, achieving superior pricing and broader investment participation this time around. Analysts emphasize that the extensive oversubscription highlights the UAE’s vibrant financial framework and diversified economic landscape, continuously attracting both regional and international funding.

This successful issuance fortifies Ittihad International's financial stature and broadens its market presence, establishing a new standard for corporate Sukuk activities in the region.