Mashreq marked a return to the syndicated mortgage market after a spot of 11 years, efficiently closing its extremely oversubscribed US$2 billion syndicated mortgage in two tranches – with a three-year and a five-year time period.
Mashreq’s final syndicated mortgage issuance was in 2014.
Ahmed Abdelaal, Group Chief Government Officer, remarked: “We’re happy with the sturdy assist for this landmark transaction, each from our core relationship banks in addition to from banks we have been partaking with for the primary time.
“Being the biggest funding transaction in Mashreq’s historical past, it underscores the depth of investor confidence in our credit score profile, technique, and long-term fundamentals. This profitable consequence and the brand new relationships we’ve got constructed will assist Mashreq’s progress ambitions into 2026 and past.”
Mashreq’s dual-phase fundraising drive
The transaction was in two phases. Within the first section, in direction of the tip of November, Mashreq invited its core group of monetary establishment relationship banks from the US, Europe, Australia and Japan, alongside massive banks from China, Chinese language Taipei and South Korea to take part.
The UAE financial institution achieved commitments of US$1.9 billion and closed the transaction at US$1.5 billion.
In section two, Mashreq opened the five-year tranche to a wider syndication that primarily centered on Asian buyers.
Norman Tambach, Group CFO, and Salman Hadi, Group Head of Treasury and International Markets, together with another senior members of Mashreq’s administration workforce, performed conferences and introduced the Mashreq credit score story to buyers in Chinese language Taipei, Hong Kong and Shanghai.
The investor engagement proved extremely profitable, with whole commitments of greater than US$1.4 billion coming from greater than 30 banks, an oversubscription of just about thrice the focused dimension of US$500 million.
Mashreq is rated A3 by Moody’s and A by S&P in addition to Fitch, all with a secure outlook.
Hadi, head of Mashreq’s Treasury and International Markets that led the issuance, added: “We had sturdy conviction in Mashreq’s credit score fundamentals, which gave us the arrogance to maneuver ahead with the transaction. The strategic timing and execution allowed us to profit from beneficial market circumstances, leading to important investor demand and the biggest ever funding transaction for Mashreq.”
Mashreq was the only real International Coordinator on the transaction.
Mandated Lead Managers and Bookrunners included Agricultural Financial institution of China, Australia and New Zealand Banking Group Restricted, Financial institution of America Europe, Financial institution of China, Barclays Financial institution, China Development Financial institution, Citibank, Fubon Financial institution (Hong Kong) Restricted and Taipei Fubon Business Financial institution, KDB Asia Restricted, Mizuho Financial institution, MUFG Financial institution, Customary Chartered Financial institution and The Korea Improvement Financial institution.
