Bank Of China Issues $400M Green Bond On Nasdaq Dubai For Eco-Friendly Projects

Nasdaq Dubai has welcomed a $400 million Green Bond issuance by the Bank of China (Dubai Branch). This significant issuance, due in 2027, is rated "A" by S&P Global Ratings and forms part of the Bank of China's $40 billion Medium Term Note Programme. The Floating Rate Notes are issued as Green Bonds, with proceeds aimed at financing or refinancing eligible green projects.

Ou Boqian, Consul-General of China in Dubai, highlighted the strong strategic partnership between China and the UAE. She noted that this bond issuance reflects the deep political mutual trust and flourishing financial cooperation between the two nations. The close cooperation in green finance specifically aligns with their joint statement on environment, climate change, and sustainable development.

Pan Xinyuan, General Manager of Bank of China (Dubai Branch), stated that the proceeds from this bond issuance will be exclusively used for renewable energy and clean transportation projects in the UAE. This move underscores the bank's commitment to supporting sustainable initiatives within the region.

This listing increases the total value of bonds listed on Nasdaq Dubai by the Bank of China to $1.47 billion, including listings from both Luxembourg and Dubai branches. It also enhances Nasdaq Dubai's portfolio of ESG-related issuances to $30 billion and raises the total value of listed bonds to $41 billion. This contributes to Nasdaq Dubai's reputation as a global leader in fixed-income listings and a central hub for sustainable financial instruments.

Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, commented on this development: "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 addition of this Green Bond listing further solidifies Nasdaq Dubai's standing in global financial markets. The exchange continues to attract significant issuances that support environmental sustainability and climate action goals.

This bond issuance marks an important step in enhancing financial momentum towards implementing COP28 UAE Consensus goals. The collaboration between bilateral financial institutions demonstrates a shared commitment to addressing environmental challenges through innovative financial solutions.

The strategic partnership between China and UAE is at its peak, with robust political trust and expanding financial ties. This bond issuance is a testament to their ongoing efforts to foster sustainable development through collaborative financial initiatives.

The Bank of China's commitment to using bond proceeds for renewable energy and clean transportation projects aligns with global efforts to combat climate change. This initiative not only supports local projects but also contributes to broader environmental goals.

This latest bond listing by Nasdaq Dubai exemplifies its role as a key player in promoting sustainable finance. By facilitating such issuances, it helps drive investment towards projects that have positive environmental impacts.

The collaboration between China and UAE in green finance is a model for other nations aiming to integrate sustainability into their economic frameworks. Such partnerships are crucial for achieving long-term environmental objectives globally.

The growing portfolio of ESG-related issuances on Nasdaq Dubai highlights an increasing investor interest in sustainable investments. This trend reflects a broader shift towards prioritising environmental considerations in financial decision-making.

The Bank of China's $400 million Green Bond issuance is a significant milestone in advancing green finance within the region. It showcases how strategic partnerships can effectively mobilise resources for sustainable development projects.

This bond issuance not only strengthens financial ties between China and UAE but also sets a precedent for future collaborations aimed at promoting sustainability through innovative financial instruments.

With inputs from WAM