Mashreqbank prices 1st Dim Sum bond issuance at CNH 1B

Logo of Mashreqbank

Mashreqbank announced the pricing of its first issuance of outstanding, unsecured "Dim Sum" bonds denominated in offshore Chinese yuan, at a value of CNH 1 billion, for a three-year term, and with a fixed coupon of 2.50%. This marks the bank’s first public issuance in the offshore Chinese renminbi market.

In a bourse statement, the bank said the issuance is aligned with its strategy to diversify funding sources by expanding its access to alternative funding markets.

The bank added that the issuance supports deepening its relationships with financial institutions and investors in China and Hong Kong, backed by growing trade and investment flows between these markets and the UAE, and the enhancement of cooperation within the Belt and Road Initiative framework.

It explained that following the announcement of the transaction on October 13, the bank held a one-day virtual roadshow for investors, which included one-on-one and group meetings focusing on its financial performance, funding strategy, and presence in Asian markets.

The bank noted that the subscription book opened the following day, with peak demand from regional and international investors reaching CNH 2.3 billion, representing more than two times oversubscription.

The bank expected the bonds to be listed on the Luxembourg Stock Exchange and Nasdaq Dubai, to be settled through the Euroclear and Clearstream systems, and linked to the Hong Kong Monetary Authority’s Central Moneymarkets Unit.