Ajman Bank priced its maiden Additional Tier 1 sukuk at $300 million, setting a fixed‑rate coupon of 7.75 % and a reset spread of 425 bps over the five‑year mid‑swap curve.
The perpetual, non‑callable instrument qualifies as AT1 capital under Basel III, lifting the bank’s CET1 ratio by an estimated 80 bps and providing a buffer against future regulatory tightening.
Order books surpassed $1.2 billion, representing a four‑times oversubscription driven by GCC sovereign wealth funds, Islamic banks and conventional asset managers seeking high‑yield Sharia‑compliant paper.
Market participants view the deal as a benchmark for future UAE AT1 issuance, potentially encouraging other mid‑size lenders to tap the perpetual sukuk window and diversify funding away from senior debt.
Key insights
- The $300m AT1 sukuk was priced at a 425 bps spread, the tightest for a UAE bank debut in 2024.
- Proceeds will raise Ajman Bank’s CET1 ratio by roughly 80 bps, supporting Basel III compliance.
- Order book exceeded $1.2bn, indicating 4× oversubscription from GCC institutional investors.
Why it matters
The debut expands the UAE’s AT1 sukuk universe, giving regional investors a new high‑yield, Sharia‑compliant capital instrument while helping banks meet Basel III leverage and capital requirements. It also signals growing appetite for perpetual structures amid tightening global liquidity.
Source: صحيفة الخليج