Ajman Bank P.J.S.C., the first Islamic Bank incorporated and headquartered in the Emirate of Ajman, has successfully priced a $500 million 5-year sukuk at a credit spread of 130 basis points over the United States Treasury rate, resulting in a fixed profit rate of 5.125 percent per annum.

The transaction attracted a high-quality order book that peaked at over $2.7 billion, representing a remarkable 5.4x oversubscription rate, with participation from more than 100 investors. This marks Ajman Bank’s inaugural sukuk issuance, a major milestone in the bank’s capital markets journey and an opportunity to diversify its funding platform.

Given that this transaction marks Ajman Bank’s debut in the international capital markets, the bank undertook an extensive marketing effort by meeting with investors in Hong Kong, Singapore, Malaysia, London, and the UAE. During these meetings, the bank communicated its new and revamped business strategy aimed at enhancing financial performance and positioning the bank for future growth in the UAE’s dynamic economy.

The issuance attracted demand from some of the largest international and regional institutional investors, achieving extensive geographic diversification with 35 percent allocated to international investors and 65 percent to regional investors.

Source: Economymiddleeast