Dubai: Mashreqbank PSC announced pricing of an aggregate principal amount of $300 million of its 8.500% non-callable five-year non-callable perpetual Tier 1 Notes. The offering is expected to close on July 7, 2022, subject to customary closing conditions.
Following a strong commercial update in the first quarter, the virtual roadshow for the transaction has been announced. Through a global investor call and a combination of one-on-one and group meetings, Mashreq has engaged with over 50 investors from key centers across Europe, the Middle East and Asia. Following the extensive marketing campaign, the transaction was officially launched on June 30.
The issuance is expected to further strengthen the Mashreq’s capital structure and leverage ratios, positioning itself for further balance sheet growth. In addition, it diversifies the bank’s funding mix by reducing funding concentration and increasing the average duration of liabilities. In addition, the transaction improves the Mashreq’s international credit profile, as it is the bank’s first-ever Supplemental Tier 1 offering in the international debt capital markets – and the first Supplemental Tier 1 issued this year. from the United Arab Emirates.
Commenting on the broadcast, Mashreq Group CEO Ahmed Abdelaal said: “The demand from regional and international investors for this successful capital raise demonstrates the continued confidence in the Mashreq and our ability as the leading bank in the Emirates. Arab States to access global debt capital markets, even in volatile conditions.. With strong levels of capital and liquidity and a rock-solid balance sheet, the Mashreq is well positioned to execute our growth and development strategy. customer innovation both in the UAE and in our key international markets.
BofA Securities, Citi, Emirates NBD Capital, JP Morgan, Mashreqbank, Société Générale and Standard Chartered Bank acted as co-managers.