Al Salam Bank Bahrain closes $450m AT1 capital issuance

04/06/2025 05:55 AST

Al Salam Bank has announced the successful closure of its $450 million additional Tier 1 (AT1) capital issuance, reflecting strong investor confidence in the Bahraini bank's financial strength and long-term growth strategy.

The issuance, which was structured as a private placement and advised by ASB Capital (the Group's asset management and investment banking arm headquartered in the DIFC), attracted substantial demand from regional and international investors.

The AT1 Capital issuance forms a key initiative within the Group's broader financial optimisation strategy, enhancing its capital position to support future growth plans.

Following market leading annual growth exceeding 35% across balance sheet metrics, the issuance was designed to further enhance the Group's financial standing and capitalization profile.

The issuance also underscores the bank's commitment to sustainable growth and financial resilience, positioning it as a leading and diversified financial group in the region.

The significant investor demand highlights the Group's ability to access liquidity from regional and global markets, reflecting strong investor confidence in the Bank's strategy and financial position.

ASB Capital was mandated by Al Salam Bank to advise and structure the issuance. As part of its Capital Markets offering, ASB Capital provides innovative and tailored financing solutions to meet the evolving needs of clients by leveraging market expertise and strategic partnerships.

Most recently, ASB Capital was also appointed as a joint lead manager by Bapco Energies in Q1 2025 for its $1 billion Sukuk issuance.

Rafik Nayed, Group CEO of Al Salam Bank and Managing Director of ASB Capital, said: "The overwhelming response to our $450 million AT1 Capital issuance is a testament to Al Salam Bank's financial stability, market credibility, and strategic direction."

"Since 2020, we have consistently increased our total equity by more than 65%, and this issuance further strengthens our capital base and enhances our financial agility to execute our ambitious growth aspirations," stated Nayed.

"We have recently rolled out an aggressive growth strategy across all Group companies. We are confident that the Group is well positioned to continue creating sustainable shareholder value," he noted.

Nayed highlighted ASB Capital's ability to attract substantial investor demand, despite global market volatility, spotlighting the team's capabilities in the Capital Markets space.

"By focusing on efficient capital raising and tailored financing solutions, ASB Capital connects clients to a broad network of funding sources, enabling them to adapt to market conditions and achieve growth aspirations," he stated.

"In addition to Al Salam Bank's AT1 Capital issuance, the firm's Capital Markets pipeline includes mandates from regional financial institutions and institutional clients covering Sukuk, Tier 2 Capital, syndications, and other structured instruments," he added.

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