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Dubai-based lender Mashreqbank has priced its $500 million perpetual non-call 5.5-year AT1 at par, with a 6.625% fixed rate annual coupon. The issuance has a yield of 6.625% with a T+242bps spread margin.
IPTs on the benchmark-sized offering were in the 6.875% area.
The final orderbook was in excess of $1 billion, including $85 million in JLM interest, with no hedges.
The Capital Securities have an issue date of July 7, 2026, with the first call on July 7, 2031.
Abu Dhabi Commercial Bank, BBVA, Barclays, Bank of America, Credit Agricole, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered are the mandated joint lead managers. BofA is the Billing and Delivery bank.
The AT1 will list on the Global Exchange Market of Euronext Dublin.
The pricing on the latest issuance by Mashreqbank, rated A3 (Stable) by Moody’s and A (Stable) by S&P and Fitch, packs close to its AT1 debt raise in February when the lender also raised $500 million, with a 6.25% coupon.
(Writing by Bindu Rai, editing by Daniel Luiz)
