Dentons advises Commercial Bank of Dubai on Additional Tier 1 capital issuance

Commercial Bank of Dubai (CBD) has successfully issued $600 million in Perpetual Additional Tier 1 (AT1) capital securities to refinance its existing capital position. This transaction, supported by legal counsel from Dentons, allows the bank to maintain a robust regulatory capital framework while managing its ongoing funding requirements. For the commercial banking sector, this move highlights the continued appetite for high-quality bank capital instruments from Middle Eastern financial institutions within the international markets.

Commercial Bank of Dubai (CBD) completed a $600 million issuance of Perpetual Additional Tier 1 (AT1) capital securities, alongside the redemption of an equivalent $600 million in existing AT1 securities. This refinancing effort is a core component of CBD’s broader capital management strategy, aimed at optimizing its balance sheet and ensuring a strong regulatory capital position. The new securities were priced with a fixed-rate resettable coupon of 6.625% and have been listed on both Euronext Dublin and Nasdaq Dubai.

The transaction involved a large syndicate of international and regional financial institutions. Standard Chartered Bank and Citigroup served as joint structuring agents and joint global co-ordinators. The group of joint lead managers and joint bookrunners included Abu Dhabi Commercial Bank, Barclays, Citigroup, CBD itself, Emirates NBD, First Abu Dhabi Bank, and Standard Chartered Bank. Legal advisory was provided by Dentons, with the team led by London-based partner David Cohen and Dubai-based partner Victoria Wyer, supported by a cross-border team including counsel David Brian and associate Kellie Diggin.

Industry experts noted that the successful issuance demonstrates the resilience of UAE-based commercial banks in accessing international capital markets despite periods of market volatility. Dentons partner Victoria Wyer emphasized that leading financial institutions in the region remain disciplined in their approach to execution while securing necessary regulatory capital. This transaction also underscores the growing importance of sophisticated debt capital market practices in the Middle East, as banks continue to utilize complex conventional and Islamic financing structures to meet global regulatory standards.

The deal reflects Dentons' continued investment in its Middle East debt capital markets and structured finance practice, following the recent expansion of its Dubai team. By leveraging its London and Dubai offices, the firm provides cross-border legal support for issuers and arrangers on complex financing transactions. This specific issuance for CBD highlights the firm's ability to deliver results within tight execution windows, further cementing its role as a key advisor for major financial institutions in the Gulf region.