Tian Jun, general manager, Bank of China Abu Dhabi Branch, yesterday (July 1) rang the market-opening bell to celebrate the listing of a two billion renminbi (CNY) ($322 million) bond on Nasdaq Dubai.

The listing underlines the exchange’s success in attracting securities from Chinese and other international issuers seeking a high-visibility listing in the Middle East. Bank of China will use the capital raised to support cross-border trade and infrastructure activities linking various regions of the globe under China’s ‘One Belt, One Road’ strategy.

The bell ceremony took place in the presence of Essa Kazim, governor of Dubai International Financial Centre (DIFC) and chairman of Dubai Financial Market (DFM), Li Lingbing, Consul General of the Chinese Consulate in Dubai and Abdul Wahed Al Fahim, chairman of Nasdaq Dubai.

The two billion renminbi (CNY) issuance was one of a tranche of bond issues made last month by Bank of China.

“If you connect the five branches chosen as issuers — Hong Kong, Taiwan, Singapore, Abu Dhabi and Hungary —they represent the new Silk Road. It clearly illustrates the main purpose of this issue, and that is, to boost financial and trade ties China and 65 countries alongside the Belt and the Road,” said Jun.

“The successful listing on Nasdaq Dubai shows international investors’ confidence in the huge opportunities that our Belt and Road initiative brings to UAE.”

Kazim said: “As Dubai expands its role as an important centre for Chinese financial institutions, we welcome Bank of China’s growing engagement with our capital markets infrastructure. Dubai will further strengthen its leadership position in linking the Middle East’s financial markets to China and other markets for the mutual benefit of all.”

Bank of China successfully raised the equivalent of about four billion US dollars from the international bond markets from its tranche of bond issues. The multi-currency bonds consist of four currencies comprising renminbi (CNY), Singapore dollars, US dollars and euros, ranging from 2-15 years, and are the first bonds ever issued in support of China’s ‘One Belt, One Road’ initiative.

Under this initiative, China aims to create a modern Silk Road to improve its connections to Europe and the Middle East. Projects under the plan include railways, highways, pipelines, power grids, and other infrastructure links.

Al Fahim said: “Nasdaq Dubai is positioned to promote the capital-raising needs of a growing number of Chinese and other international companies. By facilitating financial markets activity, we are committed to promoting the growth of economic and entrepreneurial initiatives carried out by a range of companies and businesses.”

The total nominal value of all conventional bonds listed on Dubai’s exchanges has reached $11.64 billion, the largest total of any exchange in the region. – TradeArabia News Service