Ittihad International Secures $550M in Historic Sukuk Offering

Ittihad International Investment LLC has achieved a remarkable feat by raising $550 million via a five-year senior unsecured Sukuk, orchestrated by Bank of Sharjah in collaboration with various regional and international banks. The transaction garnered immense investor interest, with the order book surpassing $2 billion—more than quadrupling the amount issued.

This heightened demand enabled Ittihad International to refine the pricing by 50 basis points to 7.375%, enhancing the terms from initial guidance and expanding the deal size beyond original expectations. This move is a testament to the growing investor confidence in the company’s credit profile and resilient business strategy.

The issuance follows a recent credit rating upgrade from Fitch and S&P, elevating the company from “B+” to “BB-,” which further stimulated market interest. Notably, 65% of the allocations went to investors outside the MENA region, underscoring the issuer’s international attractiveness.

This transaction signifies Ittihad International’s ongoing advancement in capital markets, following its inaugural Sukuk of $350 million in 2023, which has now achieved improved pricing and increased investor participation. Analysts point to such oversubscription as evidence of the UAE's resilient financial ecosystem and diverse economy, which continues to capture both regional and international investments.

With the successful completion of this Sukuk, Ittihad International not only fortifies its financial standing but also broadens its market presence, setting a significant precedent for corporate Sukuk activities in the region.