Dubai-listed Mashreqbank has appointed a group of banks to arrange a USD 500 million Regulation S five-year senior unsecured sukuk, with investor meetings and calls scheduled to commence on Monday.
The issuance, which falls under Mashreqbank’s USD 2.5 billion trust certificate programme, is subject to prevailing market conditions. The bank holds credit ratings of A3 from Moody’s and A from both S&P and Fitch, all with a stable outlook.
Mandated as joint lead managers and bookrunners for the transaction are ADCB, ADIB, Al Rajhi Capital, Bank ABC, DIB, Emirates NBD Capital, KFH Capital, Mashreq, Sharjah Islamic Bank, Standard Chartered Bank, and the Islamic Corporation for the Development of the Private Sector.
According to data from LSEG, Mashreq has over USD 811 million (AED 2.9 billion) in US dollar-denominated Eurobonds maturing this May.
Banks in the GCC have largely paused bond and sukuk issuance since the Eid Al Fitr break, which coincided with increased market volatility triggered by trade tariff announcements from the Trump administration in the US.
An analyst noted that although some liquidity constraints exist in the region’s banking sector, central banks are taking proactive measures, and financial institutions are exploring alternative markets for bond issuance, where demand remains strong.
