Ajman Bank lists $300m AT1 sukuk on Nasdaq Dubai in landmark capital markets move
Ajman Bank AT1 sukuk of $300m listed on Nasdaq Dubai, a perpetual additional Tier 1 issue at 6.50% to strengthen regulatory capital and diversify funding sources.
Ajman Bank has listed a $300 million additional Tier 1 perpetual sukuk on Nasdaq Dubai, marking the lender’s first AT1 capital instrument and a major step in its capital markets strategy.
The Ajman Bank AT1 sukuk carries a 6.50 percent coupon and is structured as a perpetual instrument with a five and a half year non-call period, aimed at enhancing the bank’s regulatory capital base.
Nasdaq Dubai welcomed the listing and Ajman Bank’s CEO joined exchange leaders to mark the opening of trading, underscoring the transaction’s significance for both the issuer and the listing venue.
Details of the issuance and structure
The sukuk was issued under a speculative structure typical for additional Tier 1 instruments and is non-callable for five and a half years from issuance.
The 6.50 percent yield reflects investor pricing for subordinated capital in the current market environment and supports Ajman Bank’s objective to bolster its capital ratios.
Proceeds are intended to strengthen regulatory capital, diversify funding sources and support the bank’s ongoing strategic focus on sustainable growth.
Bookbuilding and investor demand
The transaction attracted strong investor interest with a book in excess of $500 million, excluding allocations reserved for joint bookrunners.
That level of subscriptions represents roughly 1.7 times coverage, signalling robust demand for higher-yielding capital instruments across the region.
Sustained appetite for sukuk-style capital from both regional and international investors helped underpin the successful pricing and distribution.
Geographic allocation of demand
Regional investors dominated the allocation, taking 89 percent of the issue which highlights continued MENA appetite for Sharia-compliant capital instruments.
The remaining 11 percent was allocated to international investors across the United Kingdom, Europe and Asia, reflecting cross-border interest in Gulf issuers.
The geographic split underscores Nasdaq Dubai’s role in connecting regional issuers with a broad investor base.
Market impact and Nasdaq Dubai metrics
With this listing, the total value of sukuk issued by Ajman Bank on Nasdaq Dubai rises to $800 million, reinforcing the bank’s presence in public capital markets.
Nasdaq Dubai’s overall sukuk listings now stand at $98 billion, while the exchange’s aggregate listed debt instruments exceed $140 billion across 174 listings, reinforcing its position as a leading global platform for Sharia-compliant finance.
The deal contributes to market depth and offers an additional benchmark for subordinated issuance in the Gulf.
Executive commentary and strategic intent
Ajman Bank’s leadership framed the transaction as a vote of confidence in the bank’s strategy and financial strength, noting the offering’s role in supporting sustainable growth.
Executives at Nasdaq Dubai highlighted the exchange’s capacity to provide issuers with access to a diverse regional and international investor base, enabling effective capital formation.
Both parties described the listing as aligning with broader market trends that favour sukuk issuance to meet regulatory capital needs and investor demand for yield.
The successful placement of the Ajman Bank AT1 sukuk arrives amid expanding activity in Gulf capital markets, and the deal is likely to encourage further subordinated and Sharia-compliant issuance from regional banks.
By strengthening its capital position and widening its funding sources, Ajman Bank positions itself to pursue growth while meeting evolving regulatory expectations.
Market participants will be watching subsequent issuer activity closely, as the transaction provides a fresh reference point for pricing and demand for AT1 sukuk in the region.
