Dubai-listed Mashreq Bank recently issued $500 million in additional permanent debt instruments that cannot be called for five and a half years, according to a banking document. The document states that the debt instruments from the first tranche will have a yield of 7.125%, higher than the initial indicative price of 7% that was previously disclosed.
Mashreq appointed Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait (DIFC Branch), Bank of America Securities, Emirates NBD Capital, First Abu Dhabi Bank, Kamco Investment Company, Mashreq, and Mizuho as joint lead managers and bookrunners to manage the issuance. The proceeds from these debt instruments are intended to be used for the bank’s general purposes and to strengthen its capital base. The pricing for the debt instruments is set to be determined later in the day.