Sharjah, United Arab Emirates-Tuesday 2 June 2020 [ AETOS Wire ]
Sharjah
Finance Department (SFD) recently established a framework worth AED 4
billion to enhance liquidity for the Sharjah banking system in the
emirate. This move was aimed at providing additional financial
assistance to all businesses impacted by the outbreak of COVID-19.
Issued as 12
month dirham-denominated paper in several tranches, the Sharjah
Liquidity Support Mechanism (SLSM) sukuk represents the first rated
short term local currency tradeable instrument in the UAE, which can be
used for liquidity management by banks. This paper has a short term
investment grade rating of A-2 by Standard & Poor’s rating agency.
HE Waleed Al
Sayegh, director general of Sharjah Finance Department said: “The
authorities in Sharjah and across the region are taking the required
measures to provide maximum assistance to all businesses dealing with
the impact of the outbreak. This service will allow banks to use the
Sukuk as security to access liquidity facilities at the UAE Central
Bank, by following the required guidelines.”
He further
added that since the beginning of the crisis, Sharjah Government has
introduced several packages and services to support companies and
individuals.
A first
tranche of the SLSM was subscribed to in May by Bank of Sharjah with an
AED 2 billion participation. Subsequent tranches with one or more other
banks are expected to expand the SLSM to AED 4 billion.
Contacts
SAHARA Communications
Omnia Tarek, Account Manager, +971544301515, +97143298996
o.tarek@saharapr.com / www.saharagcc.com
