Dubai-based lender Mashreqbank has priced a $500 million Reg S perpetual non-call 5.5-year Additional Tier 1 (AT1) capital security at 6.25%, following strong investor demand.
The unrated issuance was priced over the interpolated 5.5-year US Treasury, which had a benchmark yield of 3.734%. Initial guidance was set between 6.75% and 6.875%. However, robust orderbook momentum enabled tightening to the final pricing level.
Final books exceeded $1.35 billion, excluding joint lead manager interest, reflecting solid appetite for the instrument.
Mashreqbank, the oldest local commercial bank in the UAE, holds long-term ratings of A3 (Stable) from Moody’s, A (Stable) from S&P and A (Stable) from Fitch.
