Sharjah accepts $181.68 million tendered certificates for purchase

By Marisa Wong

Morgantown, W.Va., March 26 – The government of the Emirate of Sharjah has set the maximum purchase amount at and will accept for purchase $181,676,000 of trust certificates under its one-day tender offer.

As announced on March 21, the government invited holders of the $500 million trust certificates due 2021 issued by Sharjah Sukuk 2 Ltd. to tender their certificates for cash up to the maximum purchase amount.

The government set the tender cap at an amount not exceeding the amount of new dollar-denominated fixed-rate trust certificates that it plans to issue under a concurrent offering. On Tuesday, Sharjah launched a $1 billion offering of seven-year trust certificates that is expected to close on April 3.

The tender offer for the existing certificates began at the start of the bookbuilding for the new issue. The submission period for the existing certificates ended at 7:30 a.m. ET on March 26.

The government accepted preferred offers for $164,776,000 of certificates and non-preferred offers for $16.9 million of certificates.

The purchase price is $1,013.00 per $1,000 principal amount, plus an accrued distribution amount of $6.50 per $1,000 principal amount.

The tender offer was not conditioned on any minimum participation but was conditioned on pricing of the new certificates.

Settlement is expected to occur on March 28.

HSBC Bank plc and Standard Chartered Bank are dealer managers for the tender offer, with Standard Chartered Bank acting as billing and delivering bank.

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