Dubai - Mubasher: Mashreq Bank has set the pricing of its inaugural $300 million perpetual non-callable additional Tier 1 offering.

The 8.5% five-year notes are expected to close on 7 July 2022, subject to customary closing conditions, according to a press release on Sunday.

The transaction was launched on 30 June, attracting investors from countries across Europe, the Middle East, and Asia.

Through the issuance, the bank seeks to strengthen its capital structure, diversify the funding mix, and improve its international credit profile.

The notes are the bank’s first additional Tier 1 offering in the international debt capital markets and the first additional Tier 1 issued this year out of the UAE.

BofA Securities, Citi, Emirates NBD Capital, JP Morgan, Mashreq Bank, Société Générale, and Standard Chartered Bank acted as Joint Lead Managers.

The bank’s CEO, 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." 

Abdelaal added: "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."

It is noteworthy to mention that in the first quarter (Q1) of 2022, the bank's unaudited consolidated financials registered a surge in net profits attributable to the owners to AED 606.13 million from AED 42.98 million in the year-ago period.