Mashreqbank launched and priced its inaugural US$500 million subordinated Lower Tier II transaction on 17 January marking the first transaction from the region in 2007.
The transaction achieved top-class distribution in terms of geographic diversification, quantity and quality of investor. The order book was 3.5 times oversubscribed - the largest oversubscription to date for a GCC financial institution bond transaction. The deal was subsequently upsized to US$500 million from US$300 million on the back of strong investor demand. The Joint Lead Managers and Book Runners were JP Morgan Securities Ltd. and UBS Investment Bank.
Abdul Aziz Al Ghurair, CEO of Mashreqbank, said: “About 70 per cent of the subscriptions came from European investors while another 20 per cent came from Asia, underscoring Mashreqbank’s wide appeal to international investors.”
Mashreqbank is the largest privately held bank in the UAE. It carries a rating of A by Fitch and A2 by Moody’s. Both ratings have a stable outlook.
