Commercial Bank of Dubai upsizes its AT1 comeback to USD 550 mn after orders top USD 825 mn

Commercial Bank of Dubai (CBD) priced the benchmark AT1 it mandated banks for earlier this week — and upsized it on strong demand, Zawya reports. The bank upsized the Reg-S perpetual non-call six-year issuance to USD 550 mn from an initial USD 500 mn target, pricing at par with a 6.625% coupon. Next, it will list on Euronext Dublin and Nasdaq Dubai.

How strong was demand? Orders peaked at USD 825 mn — well over the final USD 550 mn print — after initial price thoughts had been floated in the low 7% area.

This is CBD's second AT1 in as many years. The Baa1/A-rated lender redeemed a USD 600 mn AT1 in April, exercising the call option on the paper it had issued back in 2020. This print effectively replaces that capital, on essentially similar terms, at a moment when Gulf bank issuers are moving fast to lock in cheaper funding.

This slots into the same wave we flagged when Ajman Bank priced its debut AT1 sukuk at 6.50% overnight — except CBD is an established, repeat name in the trade, not a new entrant.

ADVISORS- Abu Dhabi Commercial Bank, Barclays, Citi, CBD itself, Emirates NBD Capital, FAB, and Standard Chartered ran the books.