The Mashreq Bank has announced the successful closure of a $2 billion syndicated loan with two tranches, one lasting three years and the other five years. This marks Mashreq’s return to the syndicated loan market, having last participated in such transactions in 2014.
The transaction was executed in two phases. In the first phase, Mashreq, serving as the sole global coordinator, invited a consortium of partner banks from financial institutions across the United States, Europe, Australia, and Japan, alongside major banks from China, Taipei, and South Korea, to participate in the loan.
The first phase successfully achieved commitments totaling $1.9 billion and was closed at $1.5 billion by the end of November. In the second phase, Mashreq opened up joint financing for the five-year tranche, primarily targeting Asian investors. Senior management members from Mashreq, including the Group Chief Financial Officer Norman Tembach and the Head of Treasury and Global Markets Salman Hadi, held meetings with investors in Taipei, Hong Kong, and Shanghai to present the credit strengths of the bank.
The investor participation was remarkably successful, garnering total commitments exceeding $1.4 billion from over 30 banks — nearly three times the initial target of $500 million. This overwhelming interest necessitated significant reductions in the allocations for investors in the loan.