China's Development Bank Successfully Lists Dual-Currency Bonds on Nasdaq Dubai, Setting a New Record for Issuance
In a significant move for cross-border finance and Dubai's standing as a global hub for fixed income investment, the China Development Bank (CDB) has listed its dual-currency bonds on Nasdaq Dubai. This landmark issuance marks a milestone in the bank's efforts to expand its international presence and diversify funding.
The CDB's dual-currency offering, comprising a USD 500 million three-year floating-rate bond and a EUR 500 million three-year fixed-rate bond, has contributed to the growth of Chinese fixed income listings on Nasdaq Dubai. As a result, the exchange now hosts over USD 13.4 billion in Chinese fixed income listings, with total debt issuances exceeding USD 136.2 billion.
The dual-currency issuance allows the CDB to diversify its foreign-currency funding, expanding its investor base beyond traditional markets. This diversification helps in reducing reliance on any single currency and taps into a broader pool of international investors. The high oversubscription rates—15 times for the euro tranche and three times for the USD tranche—indicate strong confidence among international investors in Chinese financial institutions and Dubai's market infrastructure.
The success of this listing reinforces Dubai's status as a trusted global hub for cross-border capital flows. It demonstrates Dubai's ability to attract significant international financial transactions and its role in facilitating global investment activities. The listing also highlights the confidence investors have in Dubai's market infrastructure, which is crucial for attracting and maintaining international financial business.
The participation in the euro tranche included over 30% of allocations to top-tier Supranational, Sovereign, and Agency (SSA) investors. Moreover, the euro tranche achieved the tightest spread to SOFR among similar issuances from Chinese institutions.
The CEO of Nasdaq Dubai and DFM, Hamed Ali, stated that the CDB's dual-currency listing deepens ties with Chinese financial institutions and reaffirms Dubai's role as a reliable platform for cross-border capital flows. This listing is the latest example of successful cross-border collaboration between Chinese and Dubai financial institutions, further solidifying Dubai's position as a global hub for fixed income investment.
In conclusion, the CDB's dual-currency bond listing on Nasdaq Dubai underscores Dubai's strategic position as a facilitator of cross-border financial transactions and demonstrates its attractiveness as a hub for international fixed income investments. This move not only benefits the CDB in terms of diversifying its funding and expanding its international investor base but also reinforces Dubai's role as a global hub for fixed income investment.
The CDB's decision to list its dual-currency bonds on Nasdaq Dubai serves as a testament to the bank's intent to diversify funding through investment in various currencies, thereby reducing reliance on a single currency. The success of this listing on Nasdaq Dubai, with high oversubscription rates from international investors, highlights the confidence held in Dubai's market infrastructure, thus strengthening its status as a global hub for cross-border finance and fixed income investment.
