Dubai – Mubasher: Mashreq has priced its debut $500 million Sukuk under the $2.50 billion Trust Certificate Issuance Program, with a profit rate of 5.03% annually on 15 April.
The five-year offering will be rated A by S&P and will be listed on Euronext Dublin, according to a press release.
It marks the first deal from the CEEMEA region since the announcement of U.S. tariffs on international trade partners, which triggered heightened volatility across global markets.
The Middle East received the majority of the transaction’s allocation at 75%, while Europe, including the UK, accounted for 16% of the demand.
The balance was divided between Asian markets and offshore US interest. Islamic and conventional Bank treasury divisions took the lion’s share of the issuance securing 64% of the allocations.
A group of hedge funds, asset managers, insurance and pension funds took the remainder.
The orderbook peaked at $2.90 billion, the largest ever for a Mashreq issuance. It represented an oversubscription of nearly six times and drawing interest from over 90 investors.
Mashreq’s Group CEO, Ahmed Abdelaal, said: "Being the first public issuance in the CEEMEA region since the onset of the trade war and the subsequent market dislocation, this Sukuk issuance underscores the depth of investor confidence in Mashreq’s credit profile, strategy, and long-term fundamentals.”
“This successful outcome not only supports Mashreq’s growth ambitions into 2025 and beyond but also helps re-open the debt capital markets for regional issuers seeking to re-enter with confidence,” Abdelaal mentioned.
Salman Hadi, Mashreq's Group Head of Treasury and Global Markets, who led the issuance, stated: " This strategic timing allowed us to benefit from a clear issuance window, resulting in significant investor demand and the largest orderbook ever for a Mashreq issuance."
The joint lead arrangers and bookrunners on the transaction were Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Al Rajhi Capital, Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, KFH Capital, Mashreq, Sharjah Islamic Bank, Standard Chartered Bank, and The Islamic Corporation for the Development of the Private Sector.
