Chinese Bank Lists Dual-Currency Bonds on Nasdaq Dubai

Reinforcing Dubai’s status as a strategic international hub for fixed income issuances and cross-border investments, China Development Bank (CDB) has issued dual-currency banks on Nasdaq Dubai on Wednesday.

The dual-currency issuance is part of CDB’s strategy to diversify its foreign-currency funding and expand its international investor base. Since resuming offshore bond issuances in 2015, CDB has raised the equivalent of $42.5 billion in multiple currencies, including USD, EUR, GBP, and HKD, through public and private placements.

The bonds, admitted to Nasdaq Dubai’s market and listed on the official securities list maintained by the Dubai Financial Services Authority (DFSA), include a $500 million three-year floating-rate tranche priced at Secured Overnight Financing Rate (SOFR) +30 basis points and a $586.68 million three-year fixed-rate tranche with a coupon of 2.25%. Both tranches have received an A1 rating from Moody’s, indicating strong credit quality.

The issuance attracted significant investor interest, particularly in Europe, the Middle East, and Asia. The euro-denominated tranche was oversubscribed 15 times, the highest subscription level ever achieved by a Chinese bank in a single public bond issuance.

The US dollar tranche was oversubscribed three times, setting a record for the tightest spread to SOFR among comparable Chinese bank issuances.

Investors included banks, sovereign entities, funds, and asset managers from key financial centres such as Switzerland, Germany, the UK, Spain, the Middle East, and Asia. High-quality Supranational, Sovereign, and Agency (SSA) investors accounted for over 30% of the euro tranche allocations.

Welcoming CDB’s landmark dual-currency bond listing, CEO of Nasdaq Dubai and Dubai Financial Market (DFM) Hamed Ali said that this will further strengthening Dubai’s deepening ties with China’s leading financial institutions.

Trusted Global Hub

This milestone underscores Dubai’s position as a trusted global hub for cross-border capital flows and highlights the confidence international investors place in Dubai’s market infrastructure, Hamed Ali said.

Nasdaq Dubai is continuing to expand its presence as a preferred venue for Chinese issuers. Currently, the exchange hosts over $13.4 billion in Chinese fixed income listings from institutions including ICBC, Bank of China, China Construction Bank, China’s Ministry of Finance and the Hong Kong Government. Total debt issuances listed on Nasdaq Dubai now exceed $136.2 billion.

China Development Bank is a state-owned development finance institution and dedicated to supporting China’s economic development in key industries and under-developed sectors.

With a mission to support national development and deliver a better life for the people, CDB aligns its business focus with China’s major medium- and long-term economic development strategies. At the end of 2024, CDB had total assets of $2.59 trillion.