MASHREQ ANNOUNCES PRICING OF ITS INAUGURAL US$300mn ADDITIONAL TIER 1 OFFERING

MASHREQ ANNOUNCES PRICING OF ITS INAUGURAL US$300mn ADDITIONAL TIER 1 OFFERING

Dubai, UAE, 02 July 2022:Mashreq bank psc (“Mashreq”) announced today the pricing of an aggregate principal amount of US$300 million of its 8.500% Perpetual Non-callable 5-year Additional Tier 1 Notes. The offering is expected to close on 7 July 2022, subject to customary closing conditions.

Following a strong first quarter trading update, the virtual roadshow for the Reg S only transaction was announced.Through a global investor call and a combination of individual and group meetings, Mashreq engaged with over 50 investors from key centers across Europe, the Middle East and Asia. Following the extensive marketing campaign, the transaction was formally launched on 30 June.

Initial Price Talks (“IPTs”) of low-mid 8% were released at 9.15 am UAE. Despite a challenging and volatile market backdrop, investor demand exceeded US$500mn during the course of London morning: a book update was announced at 12.30pm London time, allowing Mashreq to set the yield at 8.500% and communicating a transaction size of US$300mn.

The issuance is expected to further strengthenMashreq’s capital structure and leverage ratios, positioning for further balance sheet growth. Additionally, it diversifies the Bank’s funding mix by reducingfunding concentration and increasing the average duration of liabilities. Furthermore, the transaction enhances Mashreq’s international credit profile as it marks the Bank’s first-ever Additional Tier 1 offering in the international debt capital markets – and the first Additional Tier 1 issued this year out of the UAE.

Commenting on the issuance, MashreqGroup Chief Executive Officer, Ahmed Abdelaal, said: “The demand from both regional and international investors for this successful capital raise demonstrates continued confidence in Mashreq and our ability as a leading UAE bank to access the global debt capital markets even in volatile conditions. With strong levels of capital and liquidity and a rock-solid balance sheet Mashreq is well placed to execute on our strategy for growth and customer innovation in both the UAE and our core international markets.”

BofA Securities, Citi, Emirates NBD Capital, JP Morgan, Mashreqbank, Société Générale and Standard Chartered Bank acted as Joint Lead Managers.

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