ASB Capital Continues Capital Markets Momentum with Joint Lead Manager Role

ASB Capital, a purpose-driven asset and wealth management firm with assets under management (AUM) of USD 9.3 billion, acted as Joint Lead Manager and Bookrunner on AlJazira Bank’s USD 500 million Additional Tier 1 (AT1) perpetual non-call 5.5-year Sukuk issuance.

The transaction attracted investor orders exceeding USD 1.5 billion, more than 3 times oversubscription, and was priced with a profit rate of 6.5%. The issuance was undertaken ahead of AlJazira Bank’s planned redemption of its existing USD 500 million Tier 1 Sukuk, supporting the bank’s capital management objectives.

ASB Capital participated in the transaction alongside a syndicate of leading regional and international financial institutions, including Citi, Goldman Sachs, J.P. Morgan, First Abu Dhabi Bank, Emirates NBD Capital and Standard Chartered Bank.

The mandate marks ASB Capital’s third consecutive Joint Lead Manager and Bookrunner appointment in recent weeks, following its participation in AT1 Sukuk issuances for Alinma Bank in Saudi Arabia and Dubai Islamic Bank in the UAE. It also represents the firm’s third AT1 mandate in Saudi Arabia, further strengthening its track record across one of the region’s most active debt capital markets.

The strong level of demand for the transaction highlights continued investor appetite for GCC bank issuances and confidence in the region’s debt capital markets. The successful outcome also demonstrates the depth of liquidity available for well-positioned issuers seeking to access international capital markets.

Commenting on the transaction, Ahmed Saif, Group Chief Strategy Officer at Al Salam Bank, added: “The steady build-out of ASB Capital’s debt capital markets offering is a key initiative within the Group’s wider strategy to develop a differentiated regional investment banking platform, one that is leveraging the Group’s own balance sheet. Establishing ASB Capital as a trusted strategic partner to leading issuers positions the Group at the intersection of regional capital formation and global investor demand.”

Commenting on the transaction, Hichem Djouhri, Senior Executive Officer at ASB Capital, said: “Our role on this transaction signifies a period of strong activity for ASB Capital within regional debt capital markets. Acting as Joint Lead Manager and Bookrunner on several consecutive mandates within a short period showcases the relationships we have built with issuers and investors across the GCC. We continue to focus on connecting regional issuers with a broad institutional investor base and supporting their funding and capital management requirements.”

ASB Capital has participated in several debt capital markets transactions across the GCC, including issuances by Kuwait Finance House, Kuwait International Bank, Bapco Energies, Solidarity Bahrain, Al Salam Bank, Alinma Bank and Dubai Islamic Bank. The firm continues to expand its capital markets and investment banking activities alongside its broader asset management and advisory platform.

The AlJazira Bank transaction further builds on ASB Capital’s growing presence across regional debt capital markets and adds to a series of mandates completed across the GCC’s banking sector in recent months.