The Emirate of Sharjah priced a USD500 million five-year Islamic bond issue on Wednesday, a document from the lead arrangers showed, launching the first sovereign sukuk from the Gulf region this year. The deal will help Sharjah narrow its budget deficit. The five-year sukuk drew orders north of USD950 million, a comfortable amount but much smaller than the USD7.85 billion the emirate attracted for a USD750 million, 10-year sukuk in September 2014. "The demand suggests they got the price right. It was a solid starting point to the year in an environment where others have struggled to gather courage to launch a deal," said one investor in the sukuk. The deal was priced at a spread of 250 basis points over midswaps, the document showed, at around the same level as the initial price thoughts set on Tuesday. Adjusting for the tenor extension, the current transaction paid a new issue premium of between 35 and 40 bps, several investors and bankers said. Sharjah also chose to abandon plans to issue a 10-year sukuk due to the pricing demanded by investors, said the sources. (Reuters)