06 Sep, 2024Nasdaq Dubai Welcomes USD 400 Million Green Bond from Bank of China

Nasdaq Dubai welcomed USD 400 million Green Bonds by the Bank of China (Dubai Branch), one of China’s four biggest state-owned commercial banks.

This significant issuance, due 2027, is rated “A” by S&P Global Ratings and is part of Bank of China’s USD 40 billion Medium Term Note Programme. Notably, the Floating Rate Notes have been issued as Green Bonds, wherein the issuer intends to use the net proceeds to finance or refinance eligible green projects.

By advancing green finance initiatives, Nasdaq Dubai continues to promote the global sustainability goals, fostering a marketplace that supports responsible investments.

Nasdaq Dubai remains a leading platform for innovative listings for issuers worldwide, offering access to a diverse investor base across the Middle East and beyond. With the addition of this listing, the total value of bonds listed on Nasdaq Dubai by Bank of China, including listings from both Luxembourg and Dubai branches, reaches USD 1.47 billion.

This listing further boosts Nasdaq Dubai's portfolio of ESG-related issuances to USD 30 billion, and the total value of listed bonds to USD 41 billion contributing to the exchange’s growing standing as a global leader in fixed income listings and a central hub for sustainable financial instruments.

Ou Boqian, Consul General of the People's Republic of China in Dubai, noted that the current comprehensive strategic partnership is at its best historical moment, with solid and deep political mutual trust and flourishing financial cooperation. On the occasion of the 40th anniversary of the diplomatic relations between China and the UAE, China and the UAE issued a joint statement. The close cooperation between bilateral financial institutions in green finance specifically reflects the implementation of the statement related to the environment, climate change, and sustainable development. It also injects financial momentum into the implementation of the COP28 "UAE Consensus. 

Pan Xinyuan, General Manager of Bank of China (Dubai Branch), introduced that the proceed from this bond issuance will be exclusively used for renewable energy and clean transportation projects in the UAE. Serving the green economic transition between China and the UAE by practical actions, it further highlights Bank of China’s commitment and mission in green finance.

Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, commented: “We are pleased to welcome the Bank of China’s listing on Nasdaq Dubai. This admission highlights Dubai’s role as a premier destination for international issuers and reflects the deep-rooted relationship between the UAE and China. It also underscores the growing demand from international investors for a sustainable and dynamic financial ecosystem in the region.”

The listing notably coincides with the celebration of 40 years of diplomatic and economic relations between the UAE and China. The decades long strategic partnership has fostered robust financial collaboration, with this bond issuance serving as a testament to the deepening economic ties between the two nations. The UAE remains a key partner for China in the Middle East, with both nations continuously working together to promote mutual economic growth and sustainability.