Rolling in Bonds

Rolling in Bonds

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  • Bank of China, one of China's top four state-owned banks, has listed $300 million in bonds on Nasdaq Dubai. The bank issued the bonds, maturing in 2025, through its Dubai branch at a yield of 4.84%. The bonds, which have a coupon of 4.75%, were priced on Nov. 28, according to Refinitiv. 

  • This is the first of its kind listing from BOC’s Dubai branch, as the 2015 listing was issued by BOC’s Abu Dhabi branch. The Fitch ‘A’ rating bonds are part of the bank’s $40 billion bond issuance program. The bank shall use the proceeds for general corporate purposes.

  • Pan Xinyuan, General Manager and Regional Head of the Bank of China, stated that "All the funds from this bond issuance will be used to boost economic growth in the UAE and other Middle East countries."

Why it matters

The Bank of China Dubai Branch’s bond listing on Nasdaq Dubai is a concrete manifestation of the Bank's implementation of the 'Belt and Road' strategy and another successful practice of close cooperation between China and the UAE. It also closely aligns with the China-Arab States Summit and China-Gulf Cooperation Council (GCC) Summit. Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, welcomed the listing of Bank of China’s new bonds, as an indication of the ever-growing relations between the region’s capital markets and China.


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