UAE-based Mashreq, one of the leading financial institutions in the MENA region, has successfully priced its debut $500 million five-year Sukuk offering.
The issuance was finalized on Tuesday, April 15, 2025, with a profit rate of 5.03 percent per annum. The Sukuk will be rated ‘A’ by S&P and listed on Euronext Dublin.
This transaction marks Mashreq’s return to the debt capital markets, following its last issuance last year. Notably, it is also the first deal from the CEEMEA region (Central and Eastern Europe, Middle East, and Africa) since the announcement of U.S. tariffs on international trade partners on April 2, which introduced increased volatility in global markets.
Despite a challenging macroeconomic environment, Mashreq made a bold strategic move to proceed with a public issuance, becoming the first and only issuer in the CEEMEA region to tap the market following the tariffs announcement.
With a clear and disciplined approach, the bank capped the issuance at $500 million, reinforcing to investors that the transaction would remain fixed in size.
The market responded with overwhelming confidence. The Sukuk drew robust demand from a broad base of investors across Europe, Asia, and the Middle East. The order book peaked at $2.9 billion, representing nearly six times oversubscription — th e largest orderbook ever achieved for a Mashreq issuance.
More than 90 investors participated, highlighting the strength of the bank’s market reputation and investor trust in its credit profile.
Mashreq’s Group CEO, Ahmed Abdelaal, said: “We are pleased with the strong investor engagement and support for this landmark transaction. Being the first public issuance in the CEEMEA region since the onset of the trade war and the subsequent market dislocation, this Sukuk issuance underscores the depth of investor confidence in Mashreq’s credit profile, strategy, and long-term fundamentals.”
“The substantial oversubscription, despite ongoing market volatility, is a testament to our standing with global investors and reinforces our disciplined approach to market execution. This successful outcome not only supports Mashreq’s growth ambitions into 2025 and beyond but also helps re-open the debt capital markets for regional issuers seeking to re-enter with confidence,” Abdelaal added.
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