Sharjah (Al Ittihad)
The Central Finance Department in Sharjah launched a bond worth 4 billion dirhams, to enhance liquidity for the banks based in Sharjah, to enable them to provide additional financial support to the business sector affected by the current exceptional circumstances, due to the pandemic of the Corona virus emerging “Covid-19”. The Sukuk denominated in AED has been issued for 12 months in several segments, and is considered the first negotiable instrument in the local short-term currency in the United Arab Emirates. It has a short-term investment rating of “A-2” by the international credit rating agency “Standard & Poor’s”. , Which enables banks based in the Emirate of Sharjah to pump them into the economic cycle, according to specific criteria.
“Banks will be able to use the sukuk as collateral for the liquidity facilities at the UAE Central Bank, in accordance with the regulations and policies, which will ensure the flow of funds through the banking sector to the target segments, and other entities facing financial difficulties as a result,” said Walid Al Sayegh, General Manager of the Central Finance Department in Sharjah. Corona Virus Pandemic.
He added: “Since the beginning of the pandemic, the Sharjah government has presented many packages and initiatives that aim to support companies and individuals, both citizens and residents, and that this innovative financial offering provides the required cash flows to the target sectors, within the efficient and effective regulatory framework in place.”
Bank of Sharjah has subscribed for two billion dirhams in the first tranche, while other banks will subscribe later in the second tranche, at a value of two billion dirhams as well.
In addition, Bank of Sharjah has announced its role as the principal and sole coordinator of the process of issuing two billion dirhams in the form of credit instruments for the government of the Emirate of Sharjah, in coordination and through the financial department of the Government of Sharjah, which will be used to support the economy of Sharjah and emerging and small and medium-sized enterprises and institutions, individuals and the sector The banker, during the emerging Covid-19 Corona virus.
The bonds were issued under the “Liquidity Support Mechanism in Sharjah” program, which was initiated by the government to enhance liquidity in the banking system in Sharjah, and in line with the comprehensive economic support plan directed to the Central Bank.
