Mashreq Lists $500M AT1 Bond on Nasdaq Dubai

Mashreq has successfully listed USD 500 million in Additional Tier 1 (AT1) capital securities on Nasdaq Dubai, marking the first UAE bank capital market transaction of 2026.

The issuance attracted strong interest from regional and global investors. The orderbook reached USD 2.1 billion, showing significant oversubscription. The AT1 securities were priced at a coupon of 6.25 percent per annum, tightened from the initial guidance due to strong demand.

Strong Global Investor Participation

Investor demand was well diversified geographically. Around 67 percent of orders came from the MENA region, 22 percent from Europe, and 8 percent from Asia.

Mashreq is rated A3 by Moody’s and A by S&P and Fitch, all with a stable outlook. The successful transaction reflects continued investor confidence in the bank’s strong credit fundamentals and disciplined capital management.

Strengthening Tier 1 Capital

This issuance strengthens Mashreq’s Tier 1 capital position and supports its long-term growth plans. AT1 instruments help banks improve regulatory capital buffers while continuing to fund lending and expansion activities.

The deal also marks Mashreq’s return to the bond markets after its Sukuk issuance in April 2025. With this latest listing, the total value of Mashreq’s securities listed on Nasdaq Dubai has reached USD 1 billion.

Bell Ringing Ceremony

To celebrate the listing, Salman Hadi, Mashreq’s Group Head of Treasury and Global Markets, rang the market-opening bell at Nasdaq Dubai. He was joined by Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), along with senior representatives from both institutions.

Ahmed Abdelaal, Group CEO of Mashreq, said the strong oversubscription shows investor confidence in the bank’s financial strength, strategy, and growth potential, even in a volatile market environment.

Salman Hadi added that the strong demand reflects confidence in Mashreq’s credit profile, prudent capital management, and long-term strategy.

Hamed Ali said the transaction highlights the strength of UAE banks and the growing depth of the country’s fixed income market.

Growing Fixed Income Market in UAE

The listing also reflects the strong momentum in regional fixed income markets, especially for bank capital instruments across the GCC.

The total value of outstanding debt securities listed on Nasdaq Dubai has now reached USD 147.9 billion, reinforcing its position as a leading regional hub for fixed income and bank capital instruments.

The continued growth of AT1 and other regulatory capital instruments shows the increasing maturity and resilience of regional capital markets, with Nasdaq Dubai playing a key role in connecting UAE banks to global investors.