Ajman Bank plans to subscribe to Dubai bonds' second tranche

Ajman Bank, which has Dh1 billion in cash from its public issue proceeds, is considering to subscribe to a part of the second tranche of $20 billion (Dh73.46bn) high-yield bonds of the Government of Dubai, said a senior bank official.

This may probably make Ajman Bank the first UAE bank to invest in the high-yield bonds issued by the Government of Dubai to meet the liquidity needs of government-linked entities.

Speaking to Emirates Business, Ali E Alshaqoosh Al Mueen, Acting Chief Executive Officer of Ajman Bank, said the bank is cash rich and needs to invest in some profitable venture. It could invest in the Dubai Government bonds, he said.