Mashreq’s new capital top-up to drive 2026 growth plan
UAE bank Mashreq has boosted its capital by raising $500 million to support its growth plans.
The lender tightened the coupon rate to 6.25 percent per annum on its additional tier 1 (AT1) bond offering after offering initial price thoughts – tentative price indications – of 6.75-6.875 percent, citing favourable market conditions, it said in a statement.
AT1 issuances enable banks to bolster their capital ratios, comply with regulatory norms and support expansion or absorb potential losses.
The transaction marks Mashreq’s return to the bond markets after its sukuk issuance in April 2025, and was described as the “first UAE bank capital transaction this year”.
The order book reached $2.1 billion, with the tightest margin ever for Mashreq’s subordinated capital issuances.
Mashreq’s group CEO Ahmed Abdelaal said the deal’s oversubscription, despite market volatility, will support the bank’s growth through 2026 and beyond.
The Mena region accounted for the majority of the order book at 67 percent, while Europe (including the UK) and Asia accounted for 22 percent and 8 percent, respectively.
This month Mashreq said net profit attributable to owners fell by 23 percent to AED6.8 billion ($1.9 billion) last year, compared to AED8.9 billion a year earlier.
Assets rose 25 percent year on year to AED335 billion as of December 31, 2025, supported by broad-based balance sheet growth across the UAE franchise.
Mashraq trades on the Dubai Financial Market. Its share price on DFM closed 1.1 percent lower at AED246 on Thursday, down 3 percent so far this year.
Saif Al Ghurair Investment Group owns a 41.75 percent stake in the lender, with Abdullah Ahmed Al Ghurair Investment Co holding 31 percent.
Further reading:
- Saudi Arabia to ‘lead surge in Islamic finance’
- Kuwait issues $495m bonds for local banks
- Upbeat results for UAE banks point to big year ahead
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