Nasdaq Dubai Strengthens Global Position With China Development Bank's Dual-Currency Bond Listing

Nasdaq Dubai has marked a significant milestone with the listing of dual-currency bonds from China Development Bank (CDB). This move strengthens Dubai's role as a key international centre for fixed income issuances and cross-border investments. The bonds, listed on Nasdaq Dubai and recognised by the Dubai Financial Services Authority (DFSA), include a USD 500 million floating-rate tranche and a EUR 500 million fixed-rate tranche.

The USD tranche is priced at SOFR +30 basis points, while the EUR tranche offers a 2.25% coupon rate. Both tranches have been rated A1 by Moody’s, reflecting their strong credit quality. The issuance drew considerable interest from investors across Europe, the Middle East, and Asia. Notably, the euro-denominated tranche was oversubscribed 15 times, setting a record for Chinese banks in public bond issuances.

The US dollar tranche also saw high demand, being oversubscribed three times. This set a new benchmark for the tightest spread to SOFR among similar Chinese bank issuances. Investors included banks, sovereign entities, funds, and asset managers from financial hubs like Switzerland, Germany, the UK, Spain, the Middle East, and Asia.

Supranational, Sovereign, and Agency (SSA) investors made up over 30% of allocations in the euro tranche. Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), stated: "We are pleased to welcome China Development Bank’s landmark dual-currency bond listing to Nasdaq Dubai, further strengthening our deepening ties with China’s leading financial institutions."

This dual-currency issuance aligns with CDB's strategy to diversify its foreign-currency funding sources and broaden its international investor base. Since resuming offshore bond issuances in 2015, CDB has raised USD 42.5 billion equivalent in various currencies such as USD, EUR, GBP, and HKD through both public and private placements.

Nasdaq Dubai continues to grow as a preferred platform for Chinese issuers. Currently hosting over USD 13.4 billion in Chinese fixed income listings from institutions like ICBC and Bank of China. The total debt issuances listed on Nasdaq Dubai now exceed USD 136.2 billion.

Hamed Ali further commented that this milestone highlights Dubai’s position as a trusted global hub for cross-border capital flows. It also underscores the confidence international investors place in Dubai’s market infrastructure.

With inputs from WAM