DUBAI, 22 January 2007 — Mashreqbank launched and priced its inaugural $500 million subordinated Lower Tier II transaction recently marking the first transaction from the region in 2007. The transaction achieved top-class distribution in terms of geographic diversification, quantity and quality of investor. The order book was 3.5 times oversubscribed — the largest oversubscription to date for a GCC financial institution bond transaction. The deal was subsequently upsized to $500 million from $300 million on the back of strong investor demand. The joint lead managers and book runners were J.P. Morgan Securities Ltd. and UBS Investment Bank.