Nasdaq Dubai has celebrated the landmark listing of dual-currency bonds issued by China Development Bank (CDB), further solidifying Dubai’s reputation as a strategic international hub for fixed income issuances and cross-border investments.
The bonds were admitted to Nasdaq Dubai’s market. They are included in the official securities list maintained by the Dubai Financial Services Authority (DFSA). The bonds comprise a $500 million three-year floating-rate tranche priced at SOFR +30 basis points. They also include a EUR500 million three-year fixed-rate tranche offering a coupon of 2.25 percent. Both tranches have received an A1 rating from Moody’s, signifying strong credit quality, according to a release.
The issuance garnered significant interest from investors, particularly in Europe, the Middle East, and Asia. The euro-denominated tranche was oversubscribed 15 times. This marks the highest subscription level ever achieved by a Chinese bank in a single public bond issuance. The U.S. 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. They came from key financial centers such as Switzerland, Germany, the U.K., Spain, the Middle East, and Asia.
Read more: Nasdaq Dubai celebrates ICBC’s $1.72 billion multi-currency green bond listings
Strengthening ties with China
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 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.”
The dual-currency issuance aligns with CDB’s strategy to diversify its foreign-currency funding and broaden its international investor base. Since resuming offshore bond issuances in 2015, CDB has raised the equivalent of $42.5 billion. This amount was raised in multiple currencies, including USD, EUR, GBP, and HKD. The funds were obtained through public and private placements.
Nasdaq Dubai continues to enhance its presence as a preferred venue for Chinese issuers. Currently, the exchange hosts over $13.4 billion in Chinese fixed income listings. These listings come from institutions like 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.
