Al Salam Bank Closes $450 Million AT1 Capital Issuance

Reflecting strong investor confidence in the Bank’s financial strength and long-term growth strategy, Bahrain-based Al Salam Bank has announced the successful close of its $450 million additional Tier 1 (AT1) Capital issuance.

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 optimization 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 USD 1 billion Sukuk issuance.

Reflects on Bank’s Financial Stability

Al Salam Bank Group CEO Rafik Nayed, who is also Managing Director of ASB Capital, said that the overwhelming response to the $450 million AT1 Capital issuance is a testament to the bank’s financial stability, market credibility, and strategic direction.

He said that Al Salam Bank has been consistently increasing total equity by more than 65% since 2020, and this issuance further strengthens the bank’s capital base and enhances their financial agility to execute Al Salam Bank’s ambitious growth aspirations.

“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 explained.

He also said that ASB Capital’s ability to attract substantial investor demand, despite global market volatility, highlights 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.

“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.