Bank of Sharjah PJSC launched an offer to holders of its outstanding $500 million notes due 2020 issued by BoS Funding Ltd to tender their notes for cash.
The lender said it intends to issue new U.S. dollar-denominated notes under its $1.5 billion euro medium-term program, subject to market conditions. Whether the bank accepts for purchase existing notes tendered in the offer will be subject to the successful pricing and settlement of the issue of the new notes.
Settlement date for the tender offer is expected to be the business day following settlement of the issue of the new notes. Bank of Sharjah will pay a cash amount equal to 101% of the existing notes' principal face amount, as well as accrued interest, on the settlement date.
Should the aggregate principal amount of existing notes tendered in the offer exceed the proceeds from the new issue, the bank will accept the notes for purchase on a pro rata basis, such that the total amount will be no greater than the proceeds from the new issue.
The tender offer is expected to expire 4 p.m. Sept. 9.
Bank of Sharjah said it will carry out the tender offer to extend its maturity profile and boost the efficiency of its balance sheet.
Arab Banking Corporation BSC, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC and J.P. Morgan Securities PLC acted as dealer managers on the offer, while D.F. King Ltd. acted as information and tender agent.
