“Mashreq” lists $500 million in bonds on “Nasdaq Dubai”

Yesterday, Nasdaq Dubai welcomed the listing of additional first tranche (AT1) bonds worth $500 million, issued by Mashreq Bank.

The deal attracted strong demand from regional and international investors, as the total orders in the order book amounted to about $2.1 billion, and the issue was priced at an annual return of 6.25% after reducing the margin compared to the initial guidance. The demand was also characterized by remarkable geographical diversity, as 67% of the allocations came from the Middle East and North Africa region, 22% from Europe, and 8% from Asia.

The listing on Nasdaq Dubai highlights the depth of liquidity available to issuers in the UAE, and the continued development of the secondary capital instruments market in the region.

Head of Treasury and Global Markets at Mashreq, Salman Hadi, rang the opening bell of the trading session at Nasdaq Dubai, along with the CEO of Nasdaq Dubai and the Dubai Financial Market, Hamed Ali.

Mashreq Group CEO, Ahmed Abdel-Aal, said: “We feel optimistic about the exceptional investment demand for this issuance, which reflects continued confidence in Mashreq’s financial strength, its strategic vision, and its growth potential. Also, achieving an underwriting that significantly exceeded the size of the issuance in light of markets witnessing notable fluctuations, demonstrates a commitment to discipline in implementation, and establishes a strong capital base to support the bank’s growth ambitions.”

In turn, Head of Treasury and Global Markets at Mashreq, Salman Hadi, said: “Listing on the Nasdaq Dubai exchange is confirmation of our strong connection to global capital markets, and the volume of demand and the quality of the investor base reflect confidence in our solid credit foundations, our disciplined approach to capital management, and our long-term strategy.”

For his part, CEO of Nasdaq Dubai and the Dubai Financial Market, Hamed Ali, said: “Mashreq’s ability to reduce the issuance margin, while maintaining strong demand from investors, reflects the strength of its rating and credit standing and the continued demand for capital instruments issued by UAE banks. These issuances confirm that regional financial institutions deal with capital markets with a disciplined approach and a clear strategic vision, in light of a good response from investors to issuers that have solid financial foundations.”

He added, “This deal also confirms the development and maturity of the fixed income market in the UAE, where banks manage their capital structures efficiently, while expanding the scope of their interaction with a broad and diverse international base of investors.”

With this issuance, the total value of Mashreq’s securities listed on Nasdaq Dubai rises to about one billion dollars, which enhances the bank’s established presence in international debt markets through the stock exchange.