Dubai’s debt market opened the year with a sharp statement of intent as Mashreq placed a $500 million Additional Tier 1 (AT1) bond on Nasdaq Dubai, drawing a wave of demand that far outpaced supply.
The perpetual capital notes — rated A3 by Moody’s and A by both S&P and Fitch — were met with orders that swelled to $2.1 billion at their peak. Pricing settled at a 6.25 percent annual coupon, tightened from initial guidance after books rapidly filled.
The investor base stretched well beyond the Gulf. Roughly two-thirds of demand came from the MENA region, while European investors accounted for over a fifth. Asian buyers added another slice, underscoring the global reach of UAE bank capital offerings.
The issuance marks Mashreq’s first capital market outing since its Sukuk sale in April last year and stands as the first UAE bank capital transaction of 2026. AT1 instruments, designed to absorb losses in times of stress, bolster banks’ core capital buffers while allowing them to continue extending credit and pursuing expansion.
Market participants see the deal as a bellwether for regional fixed income. After a cautious stretch, appetite for subordinated bank capital appears to be rebuilding, with issuers across the GCC recalibrating balance sheets and approaching markets with tighter execution.
At the exchange, senior executives from Mashreq and Nasdaq Dubai marked the listing with the ceremonial market-opening bell — a symbolic nod to a deal that reflects both liquidity depth and renewed confidence in UAE financial credits.
With this placement, Mashreq’s total outstanding securities listed on Nasdaq Dubai reach $1 billion. Across the exchange, listed debt securities now total nearly $148 billion, reinforcing Dubai’s status as a regional hub for fixed income and regulatory capital instruments.
The message from the orderbook was clear: when quality credits test the waters, global capital is willing to answer.
