Chinese bank lists $1.2b green bonds on Nasdaq Dubai

Li Xuhang, Consul General of the People’s Republic of China in Dubai, rang the market-opening bell at Nasdaq Dubai on Tuesday to celebrate the listing by China Construction Bank (CCB), of two green bonds of $700 million and $500 million respectively.

The issuances by the Hong Kong Branch of CCB will support the bank’s efforts to combat climate change as the bank develops its commercial, corporate and consumer banking activities domestically and internationally.

The $700 million bond maturing in 2025 achieved a coupon of 1.25 per cent while the $500 million bond will mature in 2023 with a coupon of 1 per cent.

Li Xuhang said, “In recent years, with the continuous deepening of the comprehensive strategic partnership between China and the UAE, cooperation in all areas has been effectively consolidated and enhanced. The business activities of Chinese banks in the UAE and Dubai International Financial Centre, DIFC, continue to grow. The listing of CCB’s green bonds on Nasdaq Dubai is in line with the UAE’s vision of supporting clean energy and a green economy. I hope we can take this opportunity to continuously increase cooperation in the economic, trade and financial fields.” Yuan Shengrui, Senior Executive Officer of China Construction Bank, DIFC branch, said, “The successful issuance of these bonds has once again demonstrated to the international capital market the determination and commitment of CCB to implement green finance innovation and development, and reflects investors’ confidence in the strategy and business of CCB.

As the international financial exchange in the Middle East, Nasdaq Dubai is actively helping CCB to enhance its regional and global reputation. The exchange’s close ties with investors and sound regulatory framework provide strong support for CCB to promote the “Belt and Road” initiative and sustainable economic development.” CCB has now listed a total of four bonds on Nasdaq Dubai including issuances of $600 million in 2016 and $1.2 billion in 2017. The new bonds support the further growth of CCB, which had assets of US$3.87 trillion at the end of March 2020, up 6.5 per cent from the end of 2019.

Essa Kazim, Governor of DIFC, and Chairman of Dubai Financial Market, DFM, said, “Dubai’s unique position as the region’s business and finance hub is a catalyst for rapidly developing economic links with China that promote mutual prosperity and development. The ability of our capital markets infrastructure to support the fund raising requirements of Chinese issuers plays a significant role in promoting dynamic and productive cross-border activities.” DIFC is the regional home of CCB and many other large Chinese institutions that are developing the Belt and Road initiative. More than 6,000 Chinese-owned businesses are registered in Dubai. Trade between China and the UAE rose to $48.5 billion in 2019, up 18 per cent from $41 billion in 2017, according to the International Trade Centre, making the UAE China’s second largest Arab trade partner.

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said, “As well as being the largest venue in the Middle East for debt listings denominated in US dollars, with a total value now at $82.1 billion, Nasdaq Dubai has welcomed listings in renminbi and various other currencies. Our flexible exchange framework is at the disposal of a wide range of Chinese issuers of debt as well as equities and other securities.” The exchange has hosted a total of 19 debt issuances from Chinese issuers since 2014, valued at $11.3 billion.

Hamed Ali, Chief Executive of Nasdaq Dubai and Deputy Chief Executive of DFM, said, “Nasdaq Dubai is delighted to support these new issuances aimed at combating climate change by CCB, one of China’s most prominent banks, as CCB further develops its activities in the Mena region and beyond including strengthening its links to regional and global investors. Our collaboration with Chinese and other issuers can play a productive role in overcoming the global economic challenges that 2020 has brought by creating new prosperity and success.”

The value of new debt listings so far this year on Nasdaq Dubai has risen to $14.85 billion, higher than in any previous year during the same period, and up 58 per cent from $9.4 billion in the same period last year.

CCB’s bonds of $700 million and $500 million listed on Nasdaq Dubai on August 5th, 2020. The bonds received pre-issuance certification as climate bonds from the Climate Bonds Initiative under the Climate Bonds Standard. The bank’s 2016 and 2017 bond listings on Nasdaq Dubai matured in 2019 and May 2020 respectively.

WAM