Al Salam Bank Bahrain closes $450m AT1 capital issuance

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.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Daily Tribune

5 hours ago

• Daily Tribune

MP Al Dhaen Hails UK-Bahrain Defence and Investment Deals as Milestone in Global Cooperation

TDT | Manama MP Dr. Maryam Al Dhaen has praised the UK-Bahrain defence and investment agreements signed during the official visit of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, to London on Thursday, describing them as a clear signal of international trust in Bahrain's strategic direction. Dr. Al Dhaen said the agreements underscore Bahrain's rising influence in global diplomacy and security, pointing to the Kingdom's leadership in forging partnerships that strengthen regional stability and long-term economic growth. She highlighted the potential of the new accords to advance cooperation in cybersecurity, defence training, and investment, particularly in sectors like artificial intelligence and digital infrastructure. Growing Recognition Al Dhaen added that the reception given to Bahrain in London, including support for its UN Security Council bid, reflects the growing confidence in the Kingdom's role as a constructive, stabilising force in the region. She noted that the UK's engagement builds on Bahrain's earlier diplomatic initiatives under the Comprehensive Security and Prosperity Agreement (C-SIPA), broadening the scope of cooperation across defence and development fronts. Al Dhaen also expressed hope that the agreements would serve as a model for future collaborations, inspiring deeper integration among allied nations seeking to address global challenges through shared security frameworks and joint investment strategies.

Gulf Insider

17 hours ago

• Gulf Insider

Qatar's Economy to Grow 6.5 Per Cent by 2027

Qatar's economy is set to accelerate significantly over the next two years, with growth projected to rise from 2.4 per cent in 2025 to an average of 6.5 per cent in 2026–2027, according to the World Bank's Gulf Economic Update. The sharp rise in growth will be driven primarily by the North Field LNG expansion, which is expected to boost Qatar's liquefied natural gas (LNG) output by 40 per cent, transforming the country's hydrocarbon sector performance. While hydrocarbon growth is expected to remain modest at 0.9 per cent in 2025, the World Bank anticipates a major turnaround once the new LNG capacity comes online, cementing Qatar's position as a global energy leader. In parallel, non-hydrocarbon sectors such as education, tourism, and services continue to show strong momentum, supported by infrastructure investment and international partnerships. This diversification effort is central to Qatar's long-term economic vision. Key insights from the World Bank report: Qatar's economic growth: 2.4 per cent in 2025, rising to 6.5 per cent in 2026–2027 2.4 per cent in 2025, rising to 6.5 per cent in 2026–2027 Gulf-wide GDP: Projected to reach 3.2 per cent in 2025 and 4.5 per cent in 2026 Projected to reach 3.2 per cent in 2025 and 4.5 per cent in 2026 Non-oil growth across the GCC: Driven by structural reforms, investment, and private sector activity Driven by structural reforms, investment, and private sector activity 2024 regional growth: Improved to 1.7 per cent, up from just 0.3 per cent in 2023 Despite the upbeat forecast, the World Bank cautioned that global trade tensions and potential economic slowdown remain risks for Gulf economies. To safeguard future prosperity, it urged continued focus on economic diversification, innovation, and youth job creation. Division Director for the GCC countries at the World Bank Safaa El Tayeb El-Kogali said: 'The resilience of GCC countries in navigating global uncertainties while advancing economic diversification underscores their strong commitment to long-term prosperity. 'Strategic fiscal policies, targeted investments, and a strong focus on innovation, entrepreneurship, and job creation for youth are essential to sustaining growth and stability' Also read: Qatar Launches World's Largest 3D-Printed Building Project With Two Futuristic Schools

Daily Tribune

18 hours ago

• Daily Tribune

Gateway Unveiled

TDT | Manama Bahrain inaugurated its national pavilion at SPIEF 2025 in the presence of H.E. Abdulla bin Adel Fakhro, Minister of Industry and Commerce; H.E. Olga Lyubimova, Russia's Minister of Culture and Head of the Russia-Bahrain Intergovernmental Commission; H.E. Ahmed Abdulrahman Al Saati, Bahrain's Ambassador to Russia; and Alexander Stuglev, CEO of Rosscongress. H.E. Fakhro said the Kingdom's presence 'highlights our commitment to building stronger economic bridges and opening new avenues for collaboration,' noting over 190 active Bahrain-Russia business partnerships.