China Construction Bank lists $600m green bond on Nasdaq Dubai

China Construction Bank (DIFC Branch) has listed a $600m green bond on Nasdaq Dubai, as the bank seeks to support more Chinese corporates to participate in green energy projects, promote environmental protection and accelerate the transition to clean energy.

The green bond issuance, which is aimed at combating the impact of climate change, highlights the growing synergy in green financing between China and the UAE.

“The branch will take the green bond issuance as an opportunity to further boost the economy with high-quality growth. And take the capital market as the bridge to support cooperation in green sustainable development and energy transformation between China, UAE and the region,” said Yuan Shengrui, CEO of China Construction Bank (DIFC Branch).

The total value of bonds listed on Nasdaq Dubai by China Construction Bank, comprising the issuances by Hong Kong and Dubai branches, now stands at $2.45bn.

The listing by China Construction Bank brings Nasdaq Dubai’s total value of sustainable-linked issuances to $27.05bn and contributes to a total value of debt listed on the exchange totalling $128.7bn.

The landmark listing will leverage the capital market to support green projects in the UAE and the region in sectors of renewable energy, water desalinisation, reduction of greenhouse gas emissions and energy saving.

China issuers tap Nasdaq Dubai

Meanwhile, the cumulative value of outstanding debt from Chinese issuers on Nasdaq Dubai stands at $11.95bn through 22 issuances.

State-run Industrial and Commercial Bank of China (ICBC) listed green bonds worth $2.03bn on the bourse last November. The listing includes four issuances by ICBC’s branches in Dubai (DIFC), Hong Kong, Singapore and Luxembourg.

The listing by ICBC consolidated the bank’s position as the largest issuer of green bonds on Nasdaq Dubai with a cumulative total of $6.93bn. It also established the state-owned lender as the leading Chinese issuer on Nasdaq Dubai, contributing a total of $7.43bn.

UAE authorities have been encouraging issuers to raise green debt as the country is hosting the COP28 climate conference, which kicked off on November 30.

The country’s markets regulator said the total value of green bonds and sukuk issued in the Gulf state reached around Dhs15.45bn during the first 11 months of 2023.

The Dubai Financial Services Authority waived all regulatory fees for issuers wishing to list sustainability-related debt securities in the Dubai International Financial Centre in 2024.

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