IslamicFinance.de

Sources say, the emirate of Sharjah has hired HSBC to set up a US-dollar sukuk programme because its government is looking into borrowing to reduce its budget deficit. A first issuance under the newly set sukuk programme is expected in the 4th quarter 2017 according to sources. HSBC has not yet commented on this. The government of Sharjah did not respond either.
Sharjah debted capital market before, having issued a $750 million 10-year sukuk in 2014 and a $500 million 5-year sukuk in January 2016. Sharjah is rated BBB+ by Standard & Poor's. The agency affirmed its credit rating and outlook last month, citing Sharjah' social and political stability, and the emirate's low external risks derived from its membership in the United Arab Emirates. The rating however is constrained by the emirate's limited monetary flexibility, due to the fact that the UAE dirham is pegged to the US dollar, and the underdeveloped domestic bond market, S&P said.