UAE's Mashreq Bank Courts Asian Investors With First 1 Billion Chinese Yuan Dim Sum Bond

(MENAFN- Khaleej Times) Dubai's Mashreq bank has priced its inaugural CNH 1 billion three-year senior unsecured Dim Sum bond at a fixed coupon of 2.50 per cent.

This is the bank's first public issuance in the offshore renminbi market.

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The orderbook peaked at CNH 2.3 billion, more than two times oversubscribed, with strong demand from regional and international investors.

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Mashreq announced the transaction on October 13 and held a targeted one-day virtual investor marketing exercise, with one-on-one and group meetings. These focused on the bank's financial performance, funding strategy and growing engagement with Asian markets.

The orderbook opened the following day. The bank said the two-day execution let it maintain pricing discipline while limiting exposure to market volatility.

The bond is expected to be listed on the Luxembourg Stock Exchange and Nasdaq Dubai. To ease access for international and Asian investors, it was structured for settlement through Euroclear and Clearstream, with links to Hong Kong's Central Moneymarkets Unit (CMU).

Mashreq said the issuance 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. It added that the deal deepens its engagement with financial institutions and investors from China and Hong Kong, reinforcing the UAE's position as a strategic regional gateway for cross-border capital flows.

“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,” said Ahmed Abdelaal, Group Chief Executive Officer at Mashreq.

Bank of China, China International Capital Corporation (CICC), China Securities, Guotai Junan International, Industrial and Commercial Bank of China (ICBC) and Standard Chartered acted as joint lead managers and bookrunners.

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