Mashreq has priced its inaugural 1 billion yuan ($140 million) three-year senior unsecured Dim Sum bond at a fixed coupon of 2.50%, marking its first public issuance in the offshore renminbi market.
The transaction forms part of the bank’s strategy to diversify funding sources and broaden its international investor base, Mashreq said on Thursday.
The order book peaked at 2.3 billion yuan, more than twice the issue size, following a one-day virtual investor marketing exercise after the transaction was announced on October 13.
The two-day execution enabled the bank to maintain pricing discipline while limiting exposure to market volatility, it said.
The issuance also reflects growing economic and financial ties between the UAE, China and Hong Kong, supported by trade, investment and cooperation under the Belt and Road Initiative.
Ahmed Abdelaal, Mashreq’s group chief executive, said the bond marked a milestone in funding diversification and would strengthen financial connectivity between the UAE, China and Hong Kong and the broader GCC-Asia corridor.
Salman Hadi, group head of treasury and global markets, said the transaction established a new funding channel and broadened the bank’s international investor base.
Norman Tambach, group chief financial officer, said Mashreq’s credit profile had helped attract new investors.
Bank of China, China International Capital Corporation, China Securities Co., Guotai Junan International, Industrial and Commercial Bank of China and Standard Chartered acted as joint lead managers and bookrunners.
The bond is expected to be listed on the Luxembourg Stock Exchange and Nasdaq Dubai. Settlement arrangements include Euroclear and Clearstream, with links to Hong Kong’s Central Moneymarkets Unit.
