NASDAQ Dubai has welcomed the listing of additional tier 1 bonds (AT1) worth $500 million issued by Mashreq Bank.
The deal attracted a robust demand from both regional and international investors, with total bids reaching approximately $2.1 billion. The bonds were priced to yield an annual return of 6.25%, reflecting a narrowed margin from initial guidance.
The demand exhibited notable geographical diversity, with 67% of the allocations coming from the Middle East and North Africa, 22% from Europe, and 8% from Asia.
With this issuance, the total value of securities listed by Mashreq on NASDAQ Dubai rises to around $1 billion, reinforcing the bank’s established presence in international debt markets through the exchange.
The aggregate value of fixed-income instruments listed on NASDAQ Dubai reaches $147.9 billion, further solidifying its position as a leading regional hub for fixed income and capital instruments issued by banks.
Ahmad Abd Al-Aal, CEO of Mashreq Group, expressed optimism about the exceptional investor response to the issuance, which reflects ongoing confidence in Mashreq’s financial strength, strategic vision, and growth potential. He noted that achieving significant oversubscription in the midst of volatile markets demonstrates a commitment to disciplined execution and establishes a strong capital base to support the bank’s growth ambitions.
Salman Hadi, Head of Treasury and Global Markets at Mashreq, commented that the listing on NASDAQ Dubai signifies their strong ties to global capital markets. He highlighted that the demand volume and quality of the investor base affirm confidence in their disciplined capital management approach and long-term strategy. He added that the issuance strengthens their commitment to maintaining a robust and flexible balance sheet, continuing to support sustainable growth and create additional value for shareholders and stakeholders.
Hamad Ali, CEO of NASDAQ Dubai and Dubai Financial Market, remarked that Mashreq’s ability to reduce the issuance margin while maintaining strong investor demand reflects its solid rating and credit standing, as well as the ongoing interest in capital instruments issued by UAE banks. He noted that these issuances demonstrate that regional financial institutions engage with capital markets through a disciplined approach and clear strategic vision, with good investor response towards issuers with strong financial fundamentals. This transaction also signifies the evolution and maturity of the fixed-income market in the UAE, where banks efficiently manage their capital structures while expanding their engagement with a broad and diverse international investor base.
The Mashreq issuance underscores continued investor confidence in solid credit fundamentals and disciplined capital management. With this issuance, Mashreq is returning to the bond markets following its sukuk offering in April 2025, bolstering its tier 1 capital base.
Additionally, additional tier 1 instruments enable banking institutions to bolster their regulatory capital reserves while continuing to support financing activities and growth.
Furthermore, this issuance marks the first capital transaction by a UAE bank for the year 2026. Regional fixed-income markets have started the year with strong and renewed momentum, driven by strong investor demand for banking capital instruments, along with a disciplined approach to improving balance sheet structures across the banking sector in the GCC countries.
The listing on NASDAQ Dubai reflects this overall trend and highlights the depth of liquidity available to issuers in the UAE, alongside the continued development of the secondary capital market in the region.
To celebrate the successful listing, Salman Hadi rang the opening bell for the trading session at NASDAQ Dubai, alongside Hamad Ali and several senior officials from both sides.