Arab Bank has announced the successful issuance of $250 million in Additional Tier 1 (AT1) Capital Securities, the first sustainable perpetual AT1 issue in Jordan.

 

The proceeds of the issuance will be used to finance a portfolio of qualified sustainable projects, in line with Arab Bank’s strategy to integrate Environmental, Social and Governance (ESG) principles across the organisation. 

 

The bond, which was issued through a private placement, is listed on the International Securities Market (ISM) and the Sustainable Bond Market of the London Stock Exchange. 

 

Diverse investors

The bond, which offers investors an interest rate of 8%, attracted a diverse group of investors, including large institutional and individual investors from Jordan and several other countries where Arab Bank operates. 

 

The issuance is intended to further strengthen the bank’s capital base and diversify its sources of funding, to support its future plans for regional growth and expansion. 

 

Arab Bank’s Chairman Sabih Masri stated: "The overwhelming demand for this issuance, which exceeded the issue size, underscores the deep-rooted confidence that local and regional investors bestow upon Arab Bank.” 

 

Further initiatives

“We are proud to receive such a strong vote of confidence from investors in response to this significant issuance,” commented Randa Sadik, Arab Bank’s CEO.  

 

"Presently, we anticipate further initiatives, which will further boost the bank’s performance across the various business sectors,” Sadik added. “Our emphasis will remain on expanding into new markets, diversifying our revenue streams and continuing to provide comprehensive banking services and solutions, supported by integrated digital platforms and channels."-- TradeArabia News Service