Ajman Bank has listed a $300 million Additional Tier 1 (AT1) perpetual sukuk on Nasdaq Dubai, marking its first capital securities issuance and strengthening its regulatory capital base.

The perpetual non-call 5.5-year sukuk was structured under a mudaraba arrangement and carries a profit rate of 6.5%, the bank and Nasdaq Dubai said.

The transaction attracted strong investors demand with orderbook peaked at over $500 million, excluding joint lead manager interest, representing approximately 1.7 times oversubscription. Geographically, 89% of the Additional Tier 1 Perpetual Sukuk was allocated to investors from the Mena region, with the remaining 11% allocated to international investors across the UK, Europe and Asia.

Commemorating the listing, Mustafa Al Khalfawi, the CEO of Ajman Bank, rang the market-opening bell at Nasdaq Dubai in the presence of Hamed Ali, Chief Executive Officer of Nasdaq Dubai and Dubai Financial Market (DFM).

Welcoming the listing, Ali said: “The continued demand for sukuk reflects their important role in supporting the capital requirements of financial institutions across the region. The listing of Ajman Bank's inaugural Additional Tier 1 Perpetual Sukuk reinforces Nasdaq Dubai's role in providing issuers with access to a broad regional and international investor base.”

The proceeds will support Ajman Bank's capital position and diversify its funding sources, building on the bank's inaugural senior sukuk issued last year.

Al Khalfawi said: “We are pleased with the successful issuance and listing of our inaugural Additional Tier 1 Perpetual Sukuk on Nasdaq Dubai, which marks another important milestone in Ajman Bank’s capital markets journey.”

“The strong response from investors reflects the confidence placed in Ajman Bank’s strategy, financial strength, and the opportunities presented by the UAE’s dynamic economy. This transaction strengthens our capital position, diversifies our funding sources, and supports our continued focus on sustainable growth while creating long-term value for our stakeholders,” he stated.

The listing increases the value of Ajman Bank's sukuk listed on Nasdaq Dubai to $800 million, he added.

Nasdaq Dubai said the exchange now hosts $98 billion in outstanding sukuk listings, while the total value of listed debt securities has exceeded $140 billion across 174 listings.-TradeArabia News Service