Chinese bank lists five bonds worth $2.68 billion on Nasdaq Dubai

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Top officials during the bell ringing ceremony in Dubai.

Nasdaq Dubai on Thursday welcomed the listing of landmark five-tranche carbon-neutrality-themed bonds worth a total amount of $2.68 billion by the Industrial and Commercial Bank of China Limited (ICBC), the world’s largest bank by assets. These five-tranche notes were issued by ICBC’s branches in the Dubai International Financial Centre (DIFC), Hong Kong, London and Singapore.

ICBC Dubai (DIFC) Branch was responsible for the CNH-denominated tranche for the multi-currency issuance, pricing a two years CNH 2 billion note at 3.20%. The note is the first ever carbon-neutrality theme bond issued in the GCC region and the largest CNH-denominated public bond issued within the ICBC Group. The notes generated a warm reception from investors and the final pricing was tightened by 55 basis points compared to the initial guidance, with order books exceeding CNH 14 billion by the time the final guidance was disclosed.

The other tranches included a 3 years EUR 300 million note at 1.625%, a 2 years HKD 2 billion note at 2.95%, a 3 years $1.2 billion note at 2.95% and a 3 years US$ 600 million floating rate note.

To celebrate the listing, His Excellency Li Xuhang, Consul General of the People’s Republic of China in Dubai, rang Nasdaq Dubai’s market-opening bell in the presence of Zhang Junguo, General Manager of ICBC Dubai (DIFC) Branch and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM).

Li Xuhang, Consul General of the People’s Republic of China in Dubai, said: “Dubai International Financial Centre (DIFC) has always been an excellent platform for the growth of Chinese banks in Dubai, helping to strengthen bilateral economic and financial cooperation. The listing of ICBC’s green bonds on Nasdaq Dubai reflects the deepening of Chinese enterprises in the Dubai market.” Zhang Junguo, General Manager of ICBC Dubai (DIFC) Branch, said: “The successful issuance of these multi-tranche green bonds on Nasdaq Dubai demonstrates ICBC’s commitment to promote green development and implement green finance. In line with the UAE’s vision of building a clean and green future, ICBC will continue to contribute together towards global sustainable development as it is said “the climate transition is a global challenge that requires a global cooperation”. We hope we can continue to grow ICBC’s business activities in the region and strengthen China-UAE’s cooperation in the economic, trade and financial fields”.

Hamed Ali, CEO of Nasdaq Dubai and DFM, said: “We are pleased to welcome the new bond listings by ICBC, which underscore Nasdaq Dubai’s active role in strengthening links between the capital markets of the region and China. A growing number of leading institutions in China are leveraging the exchange’s world-class ecosystem to achieve their fund-raising plans and connect with international investors.” The new issuances raised the total value of ICBC’s bonds listed on Nasdaq Dubai to $4.375 billion, making ICBC the largest Chinese issuer on the exchange. The issuances that were admitted on Nasdaq Dubai on 2nd June 2022, raised the total value of debt securities listed on the exchange to $111.5 billion, reinforcing Dubai’s leading position as a dynamic capital markets hub globally.

In June, Nasdaq Dubai welcomed the listing of two Sukuk tranches issued by the Government of Indonesia, with a total value of $3.25 billion. The two tranches comprise $1.75 billion five-year Trust Certificates with a 4.40% yield and $1.5 billion 10-year Trust Certificates with a 4.70% yield.

The Government of Indonesia is one of the largest Sukuk issuers on Nasdaq Dubai, with the new listings increasing the total value of Sukuk listed by the Government on Nasdaq Dubai to $22 billion. The listings further strengthened Dubai’s position as one of the largest centers for Sukuk listings globally, with a total listed value of $80.9 billion.

Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, recently rang Nasdaq Dubai’s market-opening bell to celebrate the listing and circulation of Dhs5 billion as the first Dirham-denominated treasury bonds issued by the UAE Federal Government acting through the Ministry of Finance.

The issuance is part of an ambitious strategy that includes a series of treasury bond issuances to develop the fixed income market in the UAE by providing investors with investment opportunities in sovereign issuances and a proper gauge of yield curve of investments in debt instruments.

Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS). The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority.

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