Dubai: Nasdaq Dubai welcomed the landmark listing of dual-currency bonds issued by China Development Bank (CDB), reinforcing Dubai's status as a strategic international hub for fixed income issuances and cross-border investments. 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 USD 500 million three-year floating-rate tranche priced at SOFR +30 basis points and a EUR 500 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.
According to Emirates News Agency, the issuance attracted significant investor interest, particularly in Europe, the Middle East, and Asia. The euro-denominated tranche was oversubscribed 15 times, marking 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.
Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), expressed satisfaction with the listing, stating that it strengthens ties with China's leading financial institutions and underscores Dubai's position as a trusted global hub for cross-border capital flows. He highlighted the confidence international investors place in Dubai's market infrastructure.
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 USD 42.5 billion in multiple currencies, including USD, EUR, GBP, and HKD, through public and private placements.
Nasdaq Dubai is continuing to expand its presence as a preferred venue for Chinese issuers. The exchange currently hosts over USD 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 USD 136.2 billion.
