diff --git a/packages/sdk/CHANGELOG.md b/packages/sdk/CHANGELOG.md
index ead330ae1..1fb7d1363 100644
--- a/packages/sdk/CHANGELOG.md
+++ b/packages/sdk/CHANGELOG.md
@@ -1,5 +1,11 @@
 # Changelog
 
+## 7.0.3
+
+### Fixed
+
+- An issue with the serialization of init contract account transactions.
+
 ## 7.0.2
 
 ### Fixed
diff --git a/packages/sdk/package.json b/packages/sdk/package.json
index b83e722cc..c0e447174 100644
--- a/packages/sdk/package.json
+++ b/packages/sdk/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@concordium/web-sdk",
-    "version": "7.0.2",
+    "version": "7.0.3",
     "license": "Apache-2.0",
     "engines": {
         "node": ">=16"
diff --git a/packages/sdk/src/accountTransactions.ts b/packages/sdk/src/accountTransactions.ts
index 4381e54b0..a894084be 100644
--- a/packages/sdk/src/accountTransactions.ts
+++ b/packages/sdk/src/accountTransactions.ts
@@ -139,7 +139,10 @@ export class InitContractHandler
 
     serialize(payload: InitContractPayload): Buffer {
         const serializedAmount = encodeWord64(payload.amount.microCcdAmount);
-        const initNameBuffer = Buffer.from('init_' + payload.initName, 'utf8');
+        const initNameBuffer = Buffer.from(
+            'init_' + payload.initName.value,
+            'utf8'
+        );
         const serializedInitName = packBufferWithWord16Length(initNameBuffer);
         const serializedModuleRef = payload.moduleRef.decodedModuleRef;
         const parameterBuffer = Parameter.toBuffer(payload.param);
diff --git a/packages/sdk/test/ci/accountTransactions.test.ts b/packages/sdk/test/ci/accountTransactions.test.ts
index ad803b49f..934029c71 100644
--- a/packages/sdk/test/ci/accountTransactions.test.ts
+++ b/packages/sdk/test/ci/accountTransactions.test.ts
@@ -9,17 +9,22 @@ import {
     getAccountTransactionSignDigest,
     AccountTransactionHeader,
     SequenceNumber,
+    InitContractPayload,
+    ContractName,
+    Energy,
+    ModuleReference,
+    Parameter,
+    serializeAccountTransactionPayload,
 } from '../../src/index.js';
 
-test('configureBaker is serialized correctly', async () => {
-    const senderAccountAddress =
-        '4ZJBYQbVp3zVZyjCXfZAAYBVkJMyVj8UKUNj9ox5YqTCBdBq2M';
+const senderAccountAddress =
+    '4ZJBYQbVp3zVZyjCXfZAAYBVkJMyVj8UKUNj9ox5YqTCBdBq2M';
+const expiry = TransactionExpiry.fromDate(new Date(1675872215));
 
+test('configureBaker is serialized correctly', async () => {
     const expectedDigest =
         'dcfb92b6e57b1d3e252c52cb8b838f44a33bf8d67301e89753101912f299dffb';
 
-    const expiry = TransactionExpiry.fromDate(new Date(1675872215));
-
     const header: AccountTransactionHeader = {
         expiry,
         nonce: SequenceNumber.create(1),
@@ -60,3 +65,39 @@ test('configureBaker is serialized correctly', async () => {
 
     expect(signDigest.toString('hex')).toBe(expectedDigest);
 });
+
+test('Init contract serializes init name correctly', async () => {
+    const header: AccountTransactionHeader = {
+        expiry,
+        nonce: SequenceNumber.create(1),
+        sender: AccountAddress.fromBase58(senderAccountAddress),
+    };
+
+    const initNameBase = 'credential_registry';
+
+    const payload: InitContractPayload = {
+        amount: CcdAmount.fromMicroCcd(0),
+        initName: ContractName.fromString(initNameBase),
+        maxContractExecutionEnergy: Energy.create(30000),
+        moduleRef: ModuleReference.fromHexString(
+            'aabbccddaabbccddaabbccddaabbccddaabbccddaabbccddaabbccddaabbccdd'
+        ),
+        param: Parameter.empty(),
+    };
+
+    const transaction: AccountTransaction = {
+        header,
+        payload,
+        type: AccountTransactionType.InitContract,
+    };
+
+    const serializedTransaction =
+        serializeAccountTransactionPayload(transaction);
+
+    // Slice out the init name part of the serialized transaction.
+    const serializedInitName = serializedTransaction
+        .slice(43, serializedTransaction.length - 2)
+        .toString('utf8');
+
+    expect(serializedInitName).toEqual('init_credential_registry');
+});