Dubai-listed Mashreqbank has mandated banks for a $500 million reg S only five-year senior unsecured sukuk, with investor calls and meetings to start Monday.

The bank, rated A3 by Moody’s and A by S&P and Fitch, with a stable outlook, will issue the sukuk subject to market conditions under its $2.5 billion trust certificate issuance programme.

It has mandated ADCB, ADIB, Al Rajhi Capital, Bank ABC, DIB, Emirates NBD Capital, KFH Capital, Mashreq, Sharjah Islamic Bank, Standard Chartered Bank and the Islamic Corporation for the Development of the Private Sector as joint lead managers and joint book runners.

Mashreq has more than $811 million (AED 2.9 billion) of US dollar Eurobonds maturing in May according to LSEG data.

GCC banks have held back from the bond and sukuk market in the weeks since the Eid Al Fitr holidays, which was swiftly followed by market volatility on the back of the US Trump administration’s trade tariff announcements.

One analyst said while there are pockets of liquidity tightness for the region’s banks, they were being proactively addressed by central banks, and banks themselves are looking at new markets for issuing bonds, with adequate demand for such instruments.

(Writing by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@lseg.com