Mashreq's $500 Million Sukuk Garners Global Attention

Arabian Post

a day ago

Mashreq Bank has secured a US$500 million Sukuk issuance through its special-purpose vehicle, Mashreq Al Islami Sukuk Company Ltd, with a secondary listing on Nasdaq Dubai. The trust certificates, set to mature in 2030, were unveiled under the bank's US$2.5 billion Trust Certificate Issuance Programme. The issuance drew overwhelming appetite in the primary market, with subscriptions reaching nearly US$2.9 billion—almost six times the issued amount—before being admitted for trading on Nasdaq Dubai.
Market officials and state dignitaries marked the admission ceremony. Senior Mashreq officials including Group CEO Ahmed Abdelaal, Group Head of Corporate & Investment Banking Joel Van Dusen, and Group Head of Treasury & Global Markets Salman Hadi were present. The ceremonial bell was rung by Abdelaal, alongside Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, signifying a deepening partnership between the lender and the exchange.
The demand for the paper was robust: pricing tightened to UST + 105 basis points, offering a fixed annual return of 5.03%. Participation included more than 90 investors across the Middle East, Europe and Asia, reflecting broad confidence in Mashreq's creditworthiness and reinforcing Dubai's rising role as a global hub for Islamic finance.
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Islamic finance is a growing pillar of Dubai's capital markets. Nasdaq Dubai is now home to over US$140 billion in listed debt, of which around US$97.2 billion comprises Sukuk across 163 issuances, bolstering the emirate's reputation in sharia-compliant instruments.
This Sukuk marks Mashreq's return to international debt markets and sets a positive tone following heightened volatility triggered by US tariffs on the CEEMEA region in April 2025. According to Nasdaq Dubai CEO Hamed Ali, the success signifies 'Mashreq's growing ambitions in the Islamic finance sector' and affirms the exchange's role in connecting regional issuers with global investors.
Mashreq Chairman Abdul Aziz Al Ghurair emphasised the issuance's significance: 'This Sukuk listing marks an important step in Mashreq's commitment to strengthening the global Islamic finance landscape … a clear demonstration of cross-border capital flows.' Ahmed Abdelaal added that the listing 'affirms our disciplined approach to funding, even in a complex macro environment'—a nod to the bank's focus on transparency and sustainable value.
From a broader standpoint, the transaction shows Dubai's resilience amid global financial uncertainty. With the UST + 105 basis points spread reflecting investor trust, analysts note that the oversubscription by nearly six‑fold underscores continued market appetite for quality issuances. It strengthens investor confidence not just in Mashreq but across issuers in the CEEMEA region.
Notably, this offering marks Nasdaq Dubai's first CEEMEA issuance since April's tariff shock—a turning point that restored market momentum. Regional issuers have since pursued multiple debt placements, signalling a revival of cross-border capital flows. The listing harmonises with Dubai's strategic goal to deepen Islamic capital markets and elevate its position as a capital-raising gateway for global investors.
As Sukuk issuance gains traction amid tighter regulatory oversight and rising demand for ethical financing, Mashreq's listing not only advances its own capital diversification goals but also contributes to the maturation of Islamic fixed-income markets. With plans to issue further Islamic debt under its US$2.5 billion programme, the bank appears poised to leverage both primary and secondary market channels.
Moving forward, stakeholders will watch for future issuances by Mashreq and other CEEMEA-based issuers to assess whether this marks a sustainable trend in Islamic finance, or a one-off surge. However, the combination of strong demand, disciplined pricing and enhanced market access marks a positive step for the sector.