Jordan Ahli Bank is set to issue dollar-denominated perpetual AT1 bonds worth $120 million this month.

The bank will offer a fixed interest rate of 8.5% during the first five years, followed by the same rate of the 5-year US treasury plus a 3.5% profit margin to be recalculated every quarter.

The public subscription will be open from October 23 to November 5. It will be listed and traded on Amman Stock Exchange.

The bonds come with a call option after five years.

Perpetual bonds carry no maturity date. They are not redeemable but pays a steady interest rate forever.

In an interview with Zawya Arabic earlier this month, Jordan Ahli Bank CEO Ahmad Al Hussein had mentioned that the bank was planning to issue perpetual bonds. 

(Translated by Noha El Hennawy; editing by Seban Scaria seban.scaria@lseg.com)