• First UAE bank capital transaction in 2026. Transaction marked Mashreq’s successful return to the bond markets since its’ Sukuk issuance in April 2025, which had opened the CEEMEA market post US tariffs announcement
• Price tightening from IPTs of 62.5 bps on the back of a robust orderbook that peaked at US$2.1bn (4.2x oversubscription)
• Mashreq’s achieved the tightest ever reset margin (+252 bps) for any of its bank capital issuances (AT1 and Tier 2)
• Mashreq in effect priced flat to the secondary market level of its previous AT1 despite maturity extension of more than 20 months (1.7 years), and inside the secondary market level of recent AT1 issuances by some of the largest KSA banks

Ahmed Abdelaal – Mashreq Group CEO

Dubai, UAE: 19 February 2026: Mashreq, one of the leading financial institutions in the MENA region, and rated A3 (Moody’s), A (S&P) and A (Fitch), all with a stable outlook, successfully priced a US$500mn Additional Tier 1 bond offering with a coupon of 6.25 percent per annum on Thursday 12^th February 2026.

Mashreq decided to capitalize on favorable market conditions and to support its market leading growth trajectory with a new AT1 issuance. The transaction was launched ahead of the Asian Lunar year break, the start of the holy month of Ramadan and expected competing supply from UAE banks, lined up to issue capital securities to replace their existing ones. The issuance further strengthens Mashreq’s robust capital position and optimizes its capital structure, reinforcing the Bank’s ability to sustain its strong growth through 2026.

Following a well-attended global investor call and a couple of days of intensive marketing, Mashreq decided to open the order books on Thursday February 12^th, 2026, with initial price thoughts (IPTs) of 6.75% – 6.875% for a transaction sized capped at US$500mn. Large demand early in the process allowed Mashreq to release a book update of >US$1bn, confirming significant momentum and demand from international and regional investors. Mashreq was then able to release a revised guidance, moving 37.5 bps inside of IPTs on the back of an orderbook exceeding US$1.85 bn. Despite the strong move, the orderbook held firm allowing Mashreq to launch the Perpetual Non-Call 5.5-year Additional Tier 1 bond by setting the yield at 6.25% with a reset margin of +251.6bps. The order book peaked at US$ 2.1bn at that stage. This records the tightest ever margin for Mashreq for a subordinated Additional Tier 1 or Tier 2 capital issuance.

Mashreq’s Group Chief Executive Officer, Ahmed Abdelaal, remarked, “We are pleased with the strong investor interest and support for this strategic transaction. This issuance underscores the depth of investor confidence in Mashreq’s credit profile, strategy, and long-term growth prospects. The deal’s significant oversubscription, despite market volatility, demonstrates effective execution and will support the bank’s growth through 2026 and beyond.”

Salman Hadi, Mashreq’s Group Head of Treasury and Global Markets, who led the issuance, commented: “We had strong conviction in Mashreq’s credit fundamentals, which gave us the confidence to proceed with the transaction ahead of other UAE banks. The strategic timing enabled us to benefit from a clear market window, resulting in substantial investor interest who were keen to gain an insight into Mashreq’s market leading growth strategy.”

Norman Tambach, Mashreq’s Group CFO who led the investor marketing effort, said: “The exceptional demand this issuance attracted, from both existing and new investors, is a testament to the strength of Mashreq’s credit profile and the confidence of the global investment community in our strategy. This transaction reinforces our capital base and positions us to accelerate growth as we head into 2026. We remain committed to maintaining an open and ongoing dialogue with our investors as we execute on our ambitions.”.

The investor demand was well distributed across international and regional investors, reaffirming the investor community’s long trust in Mashreq’s credit. MENA region represented majority of the order book at 67%, while Europe (including the United Kingdom) and Asia accounted for 22% and 8% respectively. Real money demand from banks including private banks and high-quality asset managers represented the lion’s share accounting for 81% of the orderbook, while hedge funds accounted for the rest.

The bookrunners for the issuance were Abu Dhabi Commercial Bank, ANZ, BofA Securities, Barclays, Citi, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, Mizuho and MUFG.

Notes to editors

About Mashreq

Mashreq is more than half a century old bank, yet proudly thinks like a challenger, start-up, and innovator. Mashreq pioneered key innovations and developments in banking, starting with entry-level digital-first customers, all the way to powering some of the region’s most prominent corporations and wealth accounts.

The bank’s mandate is to help customers find their way to Rise Every Day, partnering through the highs and lows to help them reach fulfillment, achieve financial goals, and unlock their vision of success.

Reassuringly present in major financial centers of the world, Mashreq’s home and global HQ remains in the Middle East, offering services wherever opportunity takes its customers.

Find your way to Rise Every Day at Mashreq.com/RiseEveryDay