Mashreq Ends Year With Successful $2bn Placement Of Syndicated Loan

Mashreq’s last syndicated loan issuance was in 2014.

Ahmed Abdelaal, Group Chief Executive Officer, remarked: “We are pleased with the strong support for this landmark transaction, both from our core relationship banks as well as from banks we were engaging with for the first time.

“Being the largest funding transaction in Mashreq’s history, it underscores the depth of investor confidence in our credit profile, strategy, and long-term fundamentals. This successful outcome and the new relationships we have built will support Mashreq’s growth ambitions into 2026 and beyond.”

Mashreq’s dual-phase fundraising drive

The transaction was in two phases. In the first phase, towards the end of November, Mashreq invited its core group of financial institution relationship banks from the US, Europe, Australia and Japan, alongside large banks from China, Chinese Taipei and South Korea to participate.

The UAE bank achieved commitments of US$1.9 billion and closed the transaction at US$1.5 billion.

In phase two, Mashreq opened the five-year tranche to a wider syndication that mainly focused on Asian investors.

Norman Tambach, Group CFO, and Salman Hadi, Group Head of Treasury and Global Markets, along with some other senior members of Mashreq’s management team, conducted meetings and presented the Mashreq credit story to investors in Chinese Taipei, Hong Kong and Shanghai.

The investor engagement proved highly successful, with total commitments of more than US$1.4 billion coming from more than 30 banks, an oversubscription of almost three times the targeted size of US$500 million.

Mashreq is rated A3 by Moody’s and A by S&P as well as Fitch, all with a stable outlook.

Hadi, head of Mashreq’s Treasury and Global Markets that led the issuance, added: “We had strong conviction in Mashreq’s credit fundamentals, which gave us the confidence to move forward with the transaction. The strategic timing and execution allowed us to benefit from favourable market conditions, resulting in significant investor demand and the largest ever funding transaction for Mashreq.”

Mashreq was the sole Global Coordinator on the transaction.

Mandated Lead Managers and Bookrunners included Agricultural Bank of China, Australia and New Zealand Banking Group Limited, Bank of America Europe, Bank of China, Barclays Bank, China Construction Bank, Citibank, Fubon Bank (Hong Kong) Limited and Taipei Fubon Commercial Bank, KDB Asia Limited, Mizuho Bank, MUFG Bank, Standard Chartered Bank and The Korea Development Bank.