Dechert Advises on Government of Sharjah’s US$750 Million Sustainable Bonds

Dechert acted for the joint lead managers on the issuance of US$750 million 6.125% sustainable bonds due 2036 by the Government of the Emirate of Sharjah (acting through the Sharjah Finance Department). This was the Government's second sustainable bond issuance, and the first issuance to be listed on the London Stock Exchange.

The Government, acting through the Sharjah Finance Department, issued the bonds under Rule 144A and Regulation S of the U.S. Securities Act 1933. The bonds were issued at a price of 99.089%, resulting in a reoffer yield of 6.234%. Proceeds from the issuance will be allocated towards financing and/or refinancing eligible projects and/or expenditures as per the Government’s Sustainable Financing Framework, which is aligned with industry guidelines such as the ICMA Green Bond Principles, the ICMA Social Bond Principles, and the ICMA Sustainability Bond Guidelines.

The cross-border Dechert team that advised on this matter was led from Dubai by counsel Rafe Khokhar and partner Patrick Lyons, and from London by partner Jennifer Rees. The team was supported by associate Kerenza Kerslake, and trainee solicitors Raluca Paduraru and Pal Bebok.

Rafe Khokhar commented: “We were delighted to represent the joint lead managers on this important transaction. The success of the transaction underscores the Government’s focus on sustainability, and showcases the growing importance of GSSS instruments in the regional funding matrix. We are proud to be at the forefront of these innovative transactions.”

Abu Dhabi Commercial Bank, Bank of Sharjah, Citi, Crédit Agricole Corporate and Investment Bank, Emirates NBD, First Abu Dhabi Bank, HSBC and Standard Chartered Bank acted as joint lead managers. Emirates NBD and HSBC acted as global coordinators, and HSBC acted as sole ESG structuring agent.

Dechert’s international capital markets team based in Dubai, Hong Kong, London, Paris, Singapore and the United States has a strong track record advising on innovative capital markets transactions in the emerging markets and is a market-leading practice in the representation of sovereigns and state-owned enterprises.

About Dechert

Dechert is a global law firm that advises asset managers, financial institutions and corporations on issues critical to managing their business and their capital – from high-stakes litigation to complex transactions and regulatory matters. We answer questions that seem unsolvable, develop deal structures that are new to the market and protect clients' rights in extreme situations. Our 1,000+ lawyers across 21 offices globally focus on the financial services, private equity, private credit, real estate, life sciences and technology sectors.