ASB Capital Deepens UAE Capital Markets Presence with JLM Role in Dubai Islamic Bank’s USD 1 Billion AT1 Sukuk Issuance

TDT | Manama

Email: mail@newsofbahrain.com

ASB Capital, a purpose-driven asset and wealth management firm with assets under management (AUM) of USD 9.1 billion, acted as Joint Lead Manager and Bookrunner in Dubai Islamic Bank’s (DIB) USD 1 billion AT1 Sukuk issuance, joining a syndicate of leading regional and international financial institutions on one of the largest GCC bank capital transactions in recent years.

The transaction attracted investor orders exceeding USD 2.3 billion, representing 2.3 times oversubscription, and was priced with a profit rate of 6.25%. The issuance enabled DIB to refinance its existing USD 1 billion Sukuk redeemed in May 2026 and marks the largest GCC AT1 issuance completed since DIB’s previous AT1 issuance in 2024.

Dubai Islamic Bank, the UAE’s largest Islamic bank and the world’s first Islamic bank, attracted participation from a diversified regional and international investor base. Investors from the MENA region accounted for 83% of allocations, while investors from the UK, Europe, and other international markets represented 17%. The breadth and quality of the investor base, which comprised banks and private banks (77%), fund managers (21%), as well as insurance companies, pension funds, and sovereign wealth funds (2%) reflects the strength of the distribution platform and investor relationships that ASB Capital and its co-managers brought to the transaction.

The transaction further reinforces ASB Capital’s growing presence within regional debt capital markets, positioning the firm alongside globally recognized financial institutions on complex and systemically important capital market transactions across the GCC.

Commenting on this transaction, Hichem Djouhri, Senior Executive Officer at ASB Capital, said: "This mandate represents another important milestone in ASB Capital’s continued expansion across regional capital markets. Participating in consecutive AT1 issuances across two of the region's largest banking markets highlights the breadth of our growing distribution capabilities, execution expertise, and the trusted relationships we continue to build with issuers and investors across the GCC. We remain focused on combining regional connectivity, investor access, and disciplined execution to support leading issuers across their strategic funding and capital objectives."

Hussain Abdulhaq, Chief Treasury Officer at Al Salam Bank, added: “The strong demand for this transaction reflects the continued depth of liquidity available for high-quality GCC financial institutions and demonstrates the resilience of investor confidence across regional capital markets. The ability to attract more than USD 2.3 billion in orders, achieve strong oversubscription, and secure pricing at the tight end of guidance despite a challenging market backdrop further highlights  the  strength and maturity of capital markets across the region, as well as sustained investor appetite for well-positioned issuers."

The transaction follows ASB Capital’s recent role as Joint Lead Manager and Bookrunner on Alinma Bank’s USD 500 million AT1 Sukuk issuance, marking back-to-back AT1 mandates across Saudi Arabia and the UAE. Together, the transactions reinforce the firm’s expanding presence across the GCC’s largest banking markets and its growing role in supporting sophisticated capital solutions for regional issuers.

ASB Capital has participated in several landmark debt capital markets transactions across the region, including issuances by Kuwait Finance House, Kuwait International Bank, Bapco Energies, Solidarity Bahrain, and Al Salam Bank. The firm continues to expand its investment banking and capital markets activities as part of its broader platform spanning asset management and advisory services.