Nasdaq Dubai has admitted Ajman Bank’s $300 million Additional Tier 1 perpetual sukuk, expanding the lender’s regulatory capital and lifting its listed debt on the exchange to $800 million.The issuance, Ajman Bank’s first capital securities transaction, carries a profit rate of 6.50 per cent and is structured through a Mudaraba arrangement. It is perpetual in maturity, although the bank may exercise its first call option after five and a half years, subject to regulatory approval and the terms governing the instrument.
The transaction drew orders exceeding $500 million, excluding demand from the joint lead managers, making it about 1.7 times subscribed. Investors from the Middle East and North Africa received 89 per cent of the securities, while the remaining 11 per cent was allocated across the UK, Europe and Asia.
Chief executive Mustafa Al Khalfawi marked the listing by ringing Nasdaq Dubai’s market-opening bell in the presence of Hamed Ali, chief executive of Nasdaq Dubai and Dubai Financial Market.
Al Khalfawi said the issuance strengthened the bank’s capital position, widened its funding sources and supported its plans for sustainable expansion. He said investor demand reflected confidence in the lender’s financial strength, strategy and prospects within the UAE economy.
The sukuk will also trade on the London Stock Exchange’s International Securities Market, giving the instrument access to investors through two established international listing venues. Ajman Bank is rated BBB+ with a stable outlook by Fitch, although the AT1 securities themselves were issued without a rating.
Additional Tier 1 instruments are designed to absorb losses when a bank’s capital falls below specified regulatory levels. They normally rank behind senior debt and may allow profit payments to be cancelled. Their perpetual structure and loss-absorption features mean investors typically demand higher returns than they would for conventional senior sukuk.
For Ajman Bank, the transaction adds a new layer to its capital structure following its entry into international debt markets in 2025. The lender issued a $500 million five-year senior sukuk last year at a fixed annual profit rate of 5.125 per cent.
That debut attracted orders exceeding $2.7 billion from more than 100 investors, representing demand of about 5.4 times the issue size. Regional investors received 65 per cent of the securities, while international accounts were allocated 35 per cent.
The lower oversubscription and heavier regional allocation for the AT1 transaction reflect the different risk profile of capital instruments. Unlike senior sukuk, AT1 securities can face payment restrictions, conversion, write-down or other loss-absorption measures if regulatory capital deteriorates.
Ajman Bank’s decision to raise AT1 capital follows continued growth in financing and customer deposits. The bank reported profit before tax of Dh134 million for the first quarter of 2026, while profit after tax reached Dh130 million.
Quarterly revenue increased 22 per cent from a year earlier to Dh443 million. Net revenue rose 12 per cent to Dh222 million, while non-funded income reached Dh63 million, accounting for 28 per cent of net revenue.
Total assets stood at Dh33 billion at the end of March. Customer financing increased 9 per cent to Dh23.2 billion, while deposits reached Dh28 billion. Current and savings account balances rose 16 per cent from the previous quarter, improving access to lower-cost funding.
Shareholders’ equity stood at Dh3.2 billion, with the Common Equity Tier 1 ratio at 12.6 per cent. Return on equity improved by 30 basis points to 15.5 per cent, while return on assets was 1.6 per cent.
Asset quality also showed improvement, with the non-performing financing ratio declining by 47 basis points during the quarter to 6.5 per cent. The AT1 proceeds provide an additional capital buffer as the bank expands its financing portfolio and invests in digital services.
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