Nasdaq Dubai Welcomes USD 400M Green Bond from Bank of China

In a significant move that underscores the growing prominence of Dubai as a global hub for sustainable finance, Nasdaq Dubai has welcomed a USD 400 million Green Bond issued by the Bank of China (Dubai Branch). This bond issuance, rated 'A' by S&P Global Ratings, is part of Bank of China's USD 40 billion Medium Term Note Programme and is due in 2027. The Floating Rate Notes have been issued as Green Bonds, with the net proceeds intended to finance or refinance eligible green projects.

This issuance is particularly noteworthy as it aligns with the global sustainability goals by advancing green finance initiatives. Nasdaq Dubai continues to foster a marketplace that supports responsible investments, further boosting its portfolio of ESG-related issuances to USD 30 billion. With this new listing, the total value of bonds listed on Nasdaq Dubai by the Bank of China, including those from its Luxembourg and Dubai branches, reaches an impressive USD 1.47 billion. Overall, the total value of listed bonds on Nasdaq Dubai now stands at USD 41 billion.

Ou Boqian, Consul General of the People's Republic of China in Dubai, highlighted the strong and flourishing financial cooperation between China and the UAE. He noted that this bond issuance reflects the implementation of the joint statement related to the environment, climate change, and sustainable development issued on the 40th anniversary of diplomatic relations between the two nations. Pan Xinyuan, General Manager of Bank of China (Dubai Branch), emphasized that the proceeds from this bond issuance will be exclusively used for renewable energy and clean transportation projects in the UAE, further highlighting the Bank of China's commitment to green finance.

Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, expressed his pleasure in welcoming the Bank of China's listing, noting that it highlights Dubai's role as a premier destination for international issuers. This admission not only underscores the deep-rooted financial cooperation between China and the UAE but also positions Dubai as a central hub for sustainable financial instruments.

Given the strategic significance of this listing and its alignment with global sustainability goals, investors should consider the long-term potential of Dubai Financial Market PJSC (DFM). The company's robust portfolio of ESG-related issuances and its position as a leader in fixed income listings make it an attractive investment. Therefore, my recommendation is to buy the instrument.