DUBAI, 15th October, 2026 (WAM) — Mashreq has successfully priced its inaugural CNH1 billion three-year senior unsecured Dim Sum bond at a fixed coupon of 2.50 percent, marking the bank’s first public issuance in the offshore renminbi market.
The transaction represents a significant milestone in Mashreq’s funding diversification strategy, expanding its access to alternative funding markets. The issuance demonstrates the bank’s ability to execute transactions across international capital markets despite a challenging global macroeconomic environment while strengthening its funding profile.
The transaction also reflects the strengthening economic and financial relationship between the UAE, China and Hong Kong, supported by growing trade flows, investment activity, and cooperation under the Belt and Road Initiative.
The issuance also deepens Mashreq’s engagement with financial institutions and investors from China and Hong Kong, increasing connectivity between the two markets and reinforcing the UAE’s position as a strategic regional gateway for cross-border capital flows.
Following the transaction announcement on 13th October, Mashreq conducted a targeted one-day virtual investor marketing exercise, comprising one-on-one and group meetings focused on the bank’s financial performance, funding strategy and growing engagement with Asian markets.
The order book opened the following day, attracting strong demand from regional and international investors and peaking at CNH2.3 billion, representing an oversubscription of over two times. The efficient two-day execution strategy enabled Mashreq to maintain pricing discipline while minimising exposure to market volatility.
Ahmed Abdelaal, Group Chief Executive Officer at Mashreq, said, “Our inaugural Dim Sum bond marks an important milestone in Mashreq’s funding diversification strategy and reflects our commitment to strengthening financial connectivity between the UAE, China and Hong Kong, as well as the broader GCC–Asia corridor.
“As trade and investment flows between these markets continue to grow, we see significant opportunities to deepen our engagement with Asian investors and support businesses operating across this important corridor. The strong investor response reflects confidence in Mashreq’s credit fundamentals and our ability to connect regional and international capital markets.”
Salman Hadi, Group Head of Treasury and Global Markets at Mashreq, said, “This transaction demonstrates Mashreq’s ability to proactively access new funding markets and diversify across currencies and investor pools even in challenging times. As the offshore renminbi market continues to grow, this inaugural issuance establishes an important new funding channel and further broadens Mashreq’s international investor base.”
Norman Tambach, Group Chief Financial Officer at Mashreq, said, “Mashreq’s strong credit profile supported another landmark transaction for the bank and attracted new investors. We value our long-term investor relationships and look forward to maintaining close engagement with Asian investors as we share Mashreq’s continued progress.”
The transaction was supported by Bank of China, China International Capital Corporation (CICC), China Securities Co. (CSC), Guotai Junan International (GTJAI), Industrial and Commercial Bank of China (ICBC), and Standard Chartered, which acted as joint lead managers and bookrunners.
The bond is expected to be listed on the Luxembourg Stock Exchange and Nasdaq Dubai. To facilitate access for both international and Asian investors, the transaction was structured to enable settlement through Euroclear and Clearstream, with links to Hong Kong’s Central Moneymarkets Unit (CMU).
Source: Emirates News Agency