Mashreq Achieves Landmark Milestone with Inaugural Dim Sum Bond Issuance
The bank's CNH1 billion three-year senior unsecured bond marks a significant expansion of its funding strategy and deepens financial connectivity between the UAE, China and Hong Kong.
Mashreq has successfully priced its inaugural Dim Sum bond, a CNH1 billion three-year senior unsecured issuance at a fixed coupon of 2.50 percent, thereby establishing its first public offering in the offshore renminbi market. This momentous transaction represents a watershed moment in the bank’s funding diversification strategy, broadening its access to alternative international capital markets whilst reinforcing its financial resilience during an increasingly complex global macroeconomic landscape.
The issuance exemplifies Mashreq’s sophisticated capability to orchestrate substantial transactions across international capital markets, further strengthening its diversified funding profile through exposure to Asian investor pools. Beyond its immediate financial significance, the bond deepens the UAE’s existing economic and financial relationships with China and Hong Kong, reflecting expanding trade flows, burgeoning investment activity, and collaborative endeavours under the Belt and Road Initiative.
Following the announcement on 13th October, Mashreq conducted a focused one-day virtual investor marketing exercise comprising one-on-one and group meetings centred upon the bank’s financial performance, funding strategy and expanding engagement with Asian markets. The order book, which opened subsequently, attracted compelling demand from regional and international investors, reaching a peak of CNH2.3 billion and representing an oversubscription surpassing two times the offering size. This efficient two-day execution strategy enabled the bank to maintain pricing discipline whilst minimising exposure to market volatility.
Ahmed Abdelaal, Group Chief Executive Officer at Mashreq, reflected upon the achievement, noting that the inaugural Dim Sum bond represents an important milestone in the bank’s funding diversification strategy whilst strengthening financial connectivity between the UAE, China and Hong Kong. He emphasised the bank’s commitment to deepening engagement with Asian investors and supporting businesses operating across the increasingly vital GCC-Asia corridor.
Salman Hadi, Group Head of Treasury and Global Markets at Mashreq, highlighted the transaction’s demonstration of the bank’s proactive approach to accessing new funding markets and diversifying across currencies and investor bases. The offshore renminbi market continues to expand, creating substantial opportunities for pioneering financial institutions.
The transaction has been 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, acting jointly as lead managers and bookrunners. The bond will be listed on the Luxembourg Stock Exchange and Nasdaq Dubai, with settlement facilitated through Euroclear and Clearstream, and connected to Hong Kong’s Central Moneymarkets Unit (CMU), ensuring accessibility for both international and Asian investors.
Source: WAM