Nasdaq Dubai welcomes Al Masraf’s $500 million debut bond

Nasdaq Dubai has welcomed the listing of a $500 million bond issued by Arab Bank for Investment and Foreign Trade PJSC (Al Masraf), marking the Bank’s debut in the international debt capital markets and reinforcing Dubai’s position as a leading hub for global fixed-income issuances.

Issued under Al Masraf’s $5 billion Medium Term Note (EMTN) Programme, the five-year bond matures on 29th January 2031 and carries a coupon of 5.113 per cent per annum, equivalent to a credit spread of 125 basis points over US Treasuries.

The issuance attracted strong investor demand, with the order book peaking at over $1.3 billion, representing an oversubscription rate of 2.6 times.

The transaction drew participation from a diversified base of regional and international investors, including some of the world’s largest fund managers, banks, private banks, pension funds, and insurance companies.

The mandate for the issuance was announced on 16th January, with pricing completed on 22nd January following a series of investor meetings held across Hong Kong, Singapore, the United Kingdom, and the UAE.

Rated ‘A’ by Fitch, the bond is listed on both the London Stock Exchange’s International Securities Market and Nasdaq Dubai.

To mark the listing, Fuad Mohamed, CEO of Al Masraf, rang the market-opening bell at Nasdaq Dubai, alongside Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), and senior representatives from both organisations.

“The strong investor demand, reflects the investors’ belief in Al Masraf’s renewed strategic direction, reinforced management, and the positive strides on financial metrics over the last 12 months," Mohamed stated. "Our capital market debut in the Bank’s Golden Jubilee year allows us to penetrate the international markets and reach out to a diverse investor base while at the same time reinvigorates the relations with our esteemed regional partners.”

Ali said, “Al Masraf’s debut bond listing reflects strong and sustained investor confidence in high-quality regional issuers and underscores the continued development of the UAE’s debt capital markets. The strong response to this issuance reflects the quality of the credit and the continued appeal of Dubai as a venue for international debt listings, reinforcing the role of Dubai’s markets in supporting regional issuers’ access to global capital.”

The total outstanding value of debt securities listed on Nasdaq Dubai exceeds $147.3 billion. This reflects the depth and diversity of issuers accessing Dubai’s international debt markets across sovereign, financial institution, and corporate segments.

WAM