Ajman Bank Lists $300 Million AT1 Perpetual Sukuk on Nasdaq Dubai

EcoPulse24 | Dubai

Ajman Bank has listed a $300 million Additional Tier 1 (AT1) perpetual sukuk on Nasdaq Dubai, marking the UAE lender's first issuance of this type of capital instrument and bringing its total sukuk listings on the exchange to $800 million. The listing was confirmed by Nasdaq Dubai and announced by the UAE's official state news agency WAM on Tuesday, July 14.

Structure and Terms

The AT1 sukuk were issued under a mudaraba structure through a special purpose vehicle, Ajman Tier 1 Sukuk Ltd., and carry a profit rate of 6.50% per annum. The instruments are non-callable for five and a half years, providing Ajman Bank with a stable capital buffer aligned with Basel III regulatory requirements for Additional Tier 1 capital. The sukuk were admitted to the Official List of Securities of the Dubai Financial Services Authority (DFSA) and settle through Euroclear Bank, reflecting their broad appeal to international investors. The ISIN for the certificates is XS3310391878.

Strong Investor Demand

The issuance attracted significant investor interest, with the order book exceeding $500 million before final allocations, excluding amounts set aside for lead managers. This represents an oversubscription ratio of more than 1.67 times the final deal size. The strong demand underscores confidence in Ajman Bank's credit profile and the broader resilience of UAE Islamic banking. The bank had previously tapped capital markets through its first senior sukuk last year, and this AT1 transaction diversifies its liability structure with perpetual, loss-absorbing capital instruments required under international banking regulations.

Statement from Ajman Bank CEO

Mostafa Al-Khalfawi, Chief Executive Officer of Ajman Bank, said the successful listing represents another important milestone in the bank's capital market journey. "The strong investor response reflects confidence in our strategy and financial strength, as well as the promising opportunities offered by the UAE's vibrant economy," he said. "This transaction strengthens our capital position, diversifies our funding sources, and supports our continued focus on sustainable growth while creating long-term value for all stakeholders." The remarks highlight the bank's dual objective of meeting Basel III capital requirements while improving its standing among institutional investors.

Nasdaq Dubai's Role in Sukuk Markets

A senior official at the Dubai Financial Market noted that continued demand for sukuk reflects their critical importance in supporting the capital requirements of financial institutions across the region. The listing of Ajman Bank's inaugural AT1 sukuk confirms Nasdaq Dubai's role as a platform enabling issuers to access a broad investor base at both regional and international levels. The integration with Euroclear Bank for settlement further enhances accessibility for European and global fund managers. Nasdaq Dubai has steadily expanded its position as a leading venue for sukuk listings in the Middle East, drawing issuers from across the GCC and beyond.

Capital Market Track Record

With this latest listing, the total value of sukuk issued by Ajman Bank on Nasdaq Dubai rises to $800 million. The bank has been executing a deliberate strategy of building its capital market presence to support balance sheet growth, reduce concentration in traditional deposit funding, and optimize its regulatory capital stack. Ajman Bank focuses on retail, corporate, and small and medium enterprise banking across the UAE. The issuance arrives as UAE banks actively manage their capital ratios in response to regulatory requirements and expanding loan books driven by the country's continued economic growth momentum.

EcoPulse24 Analysis

EcoPulse24 Analysis: The oversubscription of Ajman Bank's AT1 sukuk at more than 1.67 times reflects robust investor appetite for Gulf bank capital instruments even as global interest rates remain elevated. The 6.50% profit rate reflects current market pricing for AT1 paper from mid-tier UAE lenders, while Euroclear settlement broadens the investor universe to include European and international fund managers. Ajman Bank's move to build a complete capital market funding stack - from senior to AT1 instruments - positions it competitively for long-term wholesale funding. A potential Tier 2 capital issuance could follow in coming quarters as the bank continues optimizing its structure in line with Basel III requirements and anticipated loan book growth driven by UAE economic expansion.