Post by : Badri Ariffin

In a significant move, Ajman Bank has successfully listed its inaugural US$300 million Additional Tier 1 (AT1) Perpetual Sukuk on Nasdaq Dubai, marking a first in its capital securities transactions. This listing is a pivotal step in the bank's capital markets strategy and aims to bolster its regulatory capital while broadening its funding avenues.

The US$300 million Additional Tier 1 Perpetual Non-Call 5.5-year Sukuk is structured under a Mudaraba model, offering a competitive profit rate of 6.50 percent.

Enhancement of Capital and Funding Streams

This new Sukuk is focused on strengthening Ajman Bank's regulatory capital foundation and diversifying its funding strategies. It follows the bank's inaugural senior Sukuk issuance from the previous year, underscoring its ongoing engagement in the capital markets.

The issuance attracted substantial interest from investors, with demand exceeding US$500 million, making the offering approximately 1.7 times oversubscribed.

Robust Investor Demand from the MENA Region

The bulk of the investment originated from the Middle East and North Africa (MENA), accounting for about 89 percent of the Sukuk, while 11 percent was acquired by investors from the UK, Europe, and Asia.

This level of demand indicates a strong interest from both regional and global investors.

Celebration at Nasdaq Dubai

To commemorate the listing, Mustafa Al Khalfawi, CEO of Ajman Bank, rang the opening bell at Nasdaq Dubai. The event was graced by Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM).

Nasdaq Dubai's Role in the Sukuk Market

Hamed Ali commented on the listing, noting that the ongoing demand for Sukuk showcases their essential role in fulfilling the capital needs of financial institutions across the region.

He highlighted that Ajman Bank's inaugural AT1 Perpetual Sukuk further solidifies Nasdaq Dubai's standing by connecting issuers with a broad spectrum of regional and international investors.

Milestone for Ajman Bank in Capital Markets

Mustafa Al Khalfawi stated that the successful issuance and listing of the bank's first Additional Tier 1 Perpetual Sukuk represents a noteworthy milestone in Ajman Bank's capital markets journey.

He emphasized that the strong response from investors reflects confidence in the bank's strategic direction, financial robustness, and the promising opportunities within the UAE economy. This transaction enhances the bank's capital base, broadens its funding options, and supports its long-term sustainable growth in value for its stakeholders.

Growth of Sukuk Listings on Nasdaq Dubai

With this listing, Ajman Bank's total Sukuk value on Nasdaq Dubai now stands at US$800 million.

The exchange noted that the overarching value of Sukuk listings on Nasdaq Dubai has reached US$98 billion, while total debt securities surpass US$140 billion across 174 listings, reinforcing Nasdaq Dubai's status as a premier global center for Sukuk issuance.

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