Dubai, UAE: Mashreqbank psc (“Mashreq”) announced today the pricing of an aggregate principal amount of US$300 million of its 8.500% Perpetual Non-callable 5-year Additional Tier 1 Notes. The offering is expected to close on 7 July 2022, subject to customary closing conditions.
Following a strong first quarter trading update, the virtual roadshow for the Reg S only transaction was announced. Through a global investor call and a combination of individual and group meetings, Mashreq engaged with over 50 investors from key centers across Europe, the Middle East and Asia. Following the extensive marketing campaign, the transaction was formally launched on 30 June.
Initial Price Talks (“IPTs”) of low-mid 8% were released at 9.15 am UAE. Despite a challenging and volatile market backdrop, investor demand exceeded US$500mn during the course of London morning: a book update was announced at 12.30pm London time, allowing Mashreq to set the yield at 8.500% and communicating a transaction size of US$300mn.
The issuance is expected to further strengthen Mashreq’s capital structure and leverage ratios, positioning for further balance sheet growth. Additionally, it diversifies the Bank’s funding mix by reducing funding concentration and increasing the average duration of liabilities. Furthermore, the transaction enhances Mashreq’s international credit profile as it marks the Bank’s first-ever Additional Tier 1 offering in the international debt capital markets – and the first Additional Tier 1 issued this year out of the UAE.
Commenting on the issuance, Mashreq Group Chief Executive Officer, Ahmed Abdelaal, said: “The demand from both regional and international investors for this successful capital raise demonstrates continued confidence in Mashreq and our ability as a leading UAE bank to access the global debt capital markets even in volatile conditions. With strong levels of capital and liquidity and a rock-solid balance sheet Mashreq is well placed to execute on our strategy for growth and customer innovation in both the UAE and our core international markets.”
BofA Securities, Citi, Emirates NBD Capital, JP Morgan, Mashreqbank, Société Générale and Standard Chartered Bank acted as Joint Lead Managers.
-Ends-
NEITHER THIS COMMUNICATION NOR ANY COPY OF IT MAY BE TAKEN OR RE-TRANSMITTED INTO, OR FURTHER DISTRIBUTED, DIRECTLY OR INDIRECTLY IN, THE U.S., ITS TERRITORIES OR POSSESSIONS EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT OF 1933 (THE “SECURITIES ACT”). NO SECURITIES OFFERED BY MASHREQ HAVE BEEN RECOMMENDED BY, OR APPROVED BY, THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE “SEC”) OR ANY OTHER U.S. FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY, NOR HAS ANY SUCH COMMISSION OR REGULATORY AUTHORITY PASSED UPON THE ACCURACY OR ADEQUACY OF THIS COMMUNICATION. THIS COMMUNICATION IS NOT A PUBLIC OFFER OF SECURITIES FOR SALE IN THE U.S. ANY SECURITIES DISCUSSED HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION OF THE U.S. AND MAY NOT BE OFFERED OR SOLD IN THE U.S OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) ABSENT REGISTRATION OR AN EXEMPTION FROM, OR PURSUANT TO A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT AND SUCH OFFER OR SALE IS MADE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE U.S..
This communication is subject to change and does not purport to be a complete description of the securities or the proposed offering. No money, securities or other consideration is being solicited by this communication or the information contained herein and, if sent in response to this communication or the information contained herein, will not be accepted. Neither this communication nor any information herein nor the fact of its distribution shall form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.
This communication is being only directed at, if the distribution is being effected by a person who is not an authorised person under the FSMA, only the following persons: (i) persons who are Investment Professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotion Order”), (ii) persons falling within any of the categories of persons described in Article 49 (High net worth companies, unincorporated associations, etc.) of the Financial Promotion Order; and (iii) any other person to whom it may otherwise lawfully be made in accordance with the Financial Promotion Order (all such persons together being referred to as “relevant persons”). Persons of any other description in the United Kingdom may not receive and should not act or rely on this communication. Any investment activity to which this communication may relate is only available to, and any invitation, offer, or agreement to engage in such investment activity will be engaged in only with, relevant persons. Any person who is not a relevant person should not act on this communication or any of its contents.
UK MiFIR PRODUCT GOVERNANCE / PROFESSIONAL INVESTORS AND ECPs ONLY TARGET MARKET - Solely for the purposes of each manufacturer's product approval process, the target market assessment in respect of the Capital Securities has led to the conclusion that: (i) the target market for the Capital Securities is only eligible counterparties, as defined in the FCA Handbook Conduct of Business Sourcebook, and professional clients, as defined in Regulation (EU) No. 600/2014 as it forms part of domestic law by virtue of the EUWA; and (ii) all channels for distribution of the Capital Securities to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Capital Securities (for the purpose of this paragraph a "distributor") should take into consideration the manufacturers' target market assessment; however, a distributor subject to the FCA Handbook Product Intervention and Product Governance Sourcebook is responsible for undertaking its own target market assessment in respect of the Capital Securities (by either adopting or refining the manufacturers' target market assessment) and determining appropriate distribution channels.
EU MIFID II PRODUCT GOVERNANCE / PROFESSIONAL INVESTORS AND ECPS ONLY TARGET MARKET – Solely for the purposes of the manufacturer's product approval process, the target market assessment in respect of the Capital Securities has led to the conclusion that: (i) the target market for the Capital Securities is eligible counterparties and professional clients only, each as defined in EU MiFID II; or (ii) all channels for distribution of the Capital Securities to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Capital Securities (for the purpose of this paragraph a "distributor") should take into consideration the manufacturer's target market assessment; however, a distributor subject to EU MiFID II is responsible for undertaking its own target market assessment in respect of the Capital Securities (by either adopting or refining the manufacturer's target market assessment) and determining appropriate distribution channels.
No EU PRIIPs or UK PRIIPs key information document (KID) has been prepared as the Securities are not available to retail in EEA or the United Kingdom
Solely for the purposes of its obligations pursuant to Section 309B(1)(a) and Section 309B(1)(c) of the Securities and Futures Act, Chapter 289 of Singapore, as amended or modified from time to time (the "SFA"), the Issuer has determined, and hereby notifies all relevant persons (as defined in Section 309(A)(1) of the SFA), that the Capital Securities are 'prescribed capital markets products' (as defined in the Securities and Futures (Capital Markets Products) Regulations 2018 of Singapore).
The Securities may only be offered and sold in Hong Kong to professional investors, as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong (the “SFO”) and any rules made under the SFO.
A RATING IS NOT A RECOMMENDATION TO BUY, SELL OR HOLD SECURITIES AND MAY BE SUBJECT TO REVISION, SUSPENSION OR WITHDRAWAL AT ANY TIME BY THE ASSIGNING RATING ORGANISATION. SIMILAR RATINGS FOR DIFFERENT TYPES OF ISSUERS AND ON DIFFERENT TYPES OF SECURITIES DO NOT NECESSARILY MEAN THE SAME THING. THE SIGNIFICANCE OF EACH RATING SHOULD BE ANALYSED INDEPENDENTLY FROM ANY OTHER RATING.
This communication is an advertisement and not a prospectus for the purposes of Regulation (EU) 2017/1129. The Prospectus and any supplements are available at: https://www.bourse.lu/home
For media enquiries, please contact:
Rana AlBorno
Public Relations, Mashreq
Tel: 04 –6083629
Email: RanaAlb@mashreq.com
