In a significant move for the UAE's financial sector, Nasdaq Dubai has welcomed the listing of USD 500 million in Additional Tier 1 (AT1) capital securities issued by Mashreq, a leading financial institution in the MENA region. This issuance marks the first UAE bank capital transaction of 2026 and underscores the robust investor confidence in Mashreq's financial strength and strategic vision.

The bond issuance attracted a diverse and geographically varied investor base, with the orderbook peaking at USD 2.1 billion. The issuance was priced at a coupon of 6.25% per annum, reflecting the strong demand and investor confidence. Notably, 67% of the investors hailed from the MENA region, 22% from Europe, and 8% from Asia, showcasing broad international participation.

Mashreq's issuance reflects a strategic move to strengthen its Tier 1 capital position, enabling the bank to bolster its regulatory buffers while continuing to support lending and growth. This issuance follows Mashreq's Sukuk issuance in April 2025, highlighting the bank's prudent capital management and its commitment to maintaining a strong capital foundation for future growth.

The listing on Nasdaq Dubai not only marks a milestone for Mashreq but also highlights the depth of liquidity available to high-quality UAE issuers. It underscores the continued evolution of subordinated capital markets in the region, driven by strong investor appetite for bank capital instruments and disciplined balance sheet optimization across the GCC banking sector.

The successful listing was celebrated with a market-opening bell ceremony at Nasdaq Dubai, attended by senior representatives from Mashreq and Nasdaq Dubai, further cementing the strong relationship between the entities.

Considering the robust investor demand and Mashreq's solid credit fundamentals, the outlook for Mashreq and its financial instruments remains positive. Investors looking for stable returns in a volatile market environment might consider buying into Mashreq's offerings, given the bank's strategic positioning and growth potential.