DUBAI, 25th April 2025 (WAM) -- Ajman Bank P.J.S.C., the first Islamic Bank incorporated and headquartered in the Emirate of Ajman, successfully priced a US$500 million 5-year Sukuk at a credit spread of 130 basis points over the United States treasury rate, which equates to a fixed profit rate of 5.125% per annum.

The transaction garnered a high-quality orderbook peaking over US$2.7bn, representing a 5.4x oversubscription rate, with participation from 100+ investors. The transaction represents the Bank's first Sukuk issuance ever, marking a milestone in the bank's capital markets journey and allowing it to further diversify its funding platform.

Given this transaction marks Ajman Bank's debut in the international capital markets, the Bank conducted an extensive marketing exercise by meeting with investors in Hong Kong, Singapore, Malaysia, London and the UAE. During the investor meetings, the Bank communicated its new and revamped business strategy, which will result in improved financial performance and position the bank for future growth in the UAE's vibrant economy.

The transaction attracted demand from some of the largest international and regional institutional investors, allowing the Bank to achieve an extensive geographic diversification with 35% allocated to international investors and 65% of the size allocated to regional investors.

Mustafa Al Khalfawi, Ajman Bank's Chief Executive Officer, said, "We are pleased with the success of our inaugural Sukuk issuance and the strong response from investors which highlights the confidence placed by international and regional investors in Ajman Bank, the growing prominence of the Emirate of Ajman and the robustness of the broader UAE economy. Investors welcomed Ajman Bank's ambitious growth strategy, its firm commitment to enhancing asset quality, and appreciated the opportunity to engage with a new name in the market. Additionally, they expressed their comfort and positive views on the UAE's operating environment and robust economy."

Ajman Bank took a bold initiative by opportunistically accessing the market despite prevailing uncertainty stemming from the impact of trade tariffs imposed by the United States earlier this month. The Bank announced its intention to issue a debut Sukuk on Tuesday morning and conducted calls throughout the day with European, Asian and US fund managers. On the back of positive investor feedback, the team decided to accelerate execution and close the transaction on Wednesday.

Initial Price Thoughts (IPTs) of U.S. treasuries plus 165 basis points were released to the market on Wednesday morning, with final pricing of U.S. treasuries plus 130 basis points released by London noon.

The 35 basis points price tightening, and the ability to lower pricing in one iteration, reflects the high quality of the orderbook which comprised some of the world's largest fund managers, banks, pension fund and insurance companies.

Ajman Bank is rated BBB+ by Fitch with a stable outlook. The Sukuk will be rated BBB+ by Fitch and will be listed on the London Stock Exchange's International Securities Markets and Nasdaq Dubai. The Joint Global Coordinators on the transaction were Standard Chartered Bank, Emirates NBD Capital, First Abu Dhabi Bank and J.P. Morgan also acted as Joint Lead Managers and Bookrunners alongside Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank ABC, Citi, Dubai Islamic Bank, KFH Capital, Mashreq, QNB Capital, Sharjah Islamic Bank, The Islamic Corporation for the Development of the Private Sector and Warba Bank.