Sharjah Islamic Bank seeks shareholder nod for $1.5bn of bonds

07 April 2016

Shareholder meeting will also discuss board’s proposal for appropriation of 2015 profit

Sharjah Islamic Bank (SIB), an Abu Dhabi-listed sharia-compliant lender, is seeking shareholders’ approval to issue senior unsecured bonds worth up to $1.5bn.

The issuance will be subject to clearance by regulatory authorities, the lender said in a statement to the Abu Dhabi Securities Exchange, saying the transaction could happen at “any given time’’ if it gets the shareholders’ nod at the meeting scheduled at the end of April.

The meeting will review SIB’s financial position and will also discuss the board proposal regarding the “appropriation of 2015 profits”.

The lender reported a net profit of AED409.9m ($111.7m) for 2015, a 9 per cent year-on-year jump, and proposed a 10 per cent cash dividend. Total assets reached AED29.9bn at the end of last year, rising from AED26bn from a year ago, the SIB said in a 27 January statement.

The bank also issued a $500m five-year sukuk (Islamic bond) as part of its $3bn medium-term note sukuk programme in 2015, its fourth sukuk issuance since 2006. Its total sukuk payables reached AED5.1bn at the end of last year.

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