Ajman Bank succeeds in pricing its first Sukuk at a value of $ 500 million, amidst a strong turnout

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Ajman, April 25 / WAM / Ajman Bank, “The Bank”, announced the first Islamic bank to be established in the Emirate of Ajman, that it had completed the pricing of its first version of the Sukuk worth $ 500 million for 5 years, with a fixed profit rate of 5.125% annually, a difference of 130 basis points above the price of US Treasury bonds.

The issue was exceptional demand from investors, as subscription requests exceeded $ 2.7 billion, which reflects a coverage rate of 5.4 times, with the participation of more than 100 investors.

This version represents the first instruments issued by the bank, and it is a milestone in his career in the capital market, which allows him to diversify the sources of financing.

This release was preceded by a comprehensive marketing campaign by Ajman Bank in the Hong Kong Markets, Singapore, Malaysia, London and the United Arab Emirates, where the bank reviewed during meetings with investors its developed commercial strategy, which focuses on promoting financial performance and consolidating the foundations of future growth under the prosperous Emirati economy.

The issue attracted requests from major investment institutions at the international and regional levels, which allowed the bank to achieve a diverse geographical distribution, as 35% of the sukuk was allocated to international investors and 65% for regional investors.

Mustafa Al -Khalafawi, CEO of Ajman Bank, expressed his pride in the success of the first issue of sukuk, and the great confidence shown by investors from inside and outside the country in the bank, stressing the strength and durability of the economy of the emirate of Ajman and the UAE in general.

He added that the ambitious strategy of growth adopted by the bank, and its constant interest in improving the quality of assets, was widely welcomed by investors, who expressed their appreciation to allow them to invest in a new name in the market, and expressed their confidence in the strong economic environment of the UAE.

The instruments were priced in a narrow range after the announcement of the intentions on Tuesday, as the initial price was launched at 165 basis points over the US Treasury, to be definitely determined at 130 basis points by Wednesday afternoon in London, and this decline reflects the 35 basis points of the quality of the subscription record that included a group of major fund managers, banks, pension funds and insurance companies worldwide.

Ajman Bank has a BBB+ credit rating with a stable future outlook from the “Fitch” agency, and the instruments will be classified with the same credit degree and will be included on the London International Stock Exchange and NASDAC Dubai.
Standard Chartard, Emirates NBA Capital, Abu Dhabi First Bank, and GB Morgan took the role of the main global coordinators, in addition to their work as joint managers and heads of joint books.

The “Abu Dhabi Commercial Bank”, “Abu Dhabi Islamic Bank”, “ABC”, “City Bank”, “Dubai Islamic”, “Beitk Capital”, “Al -Mashreq”, “QNB Capital”, “Sharjah Islamic Bank”, “Islamic Sector Development”, and “Warba” bank.