02/07/2015 03:23 AST
Bank of China announced the listing of a two billion yuan, or (Dh1.18 billion, $322 million) bond on Nasdaq Dubai on Wednesday. The bank is set to 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 listing is also in line with Nasdaq’s plans to attract more international companies seeking high visibility in the Middle East.
The issuance was one of a tranche of bond issues made last months by the bank. Bank of China has already raised the equivalent of about $4 billion from the international bond markets from its tranche of bond issues. The multi-currency bonds consist of four currencies; renminbi, Singapore dollars, US dollars, and euros, and are the first bonds issued in support of China’s initiative.
Under the ‘One Belt, One Road’ 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.
“If you connect the five branches chosen as issuers; Hong Kong, Taiwan, Singapore, UAE 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 Tian Jun, general manager of the Bank of China Abu Dhabi branch.
Jun had earlier said that the bank decided to list its bonds on Nasdaq Dubai as the UAE is becoming more important in terms of trade and finance in the world.
The total nominal value of all conventional bonds listed on Dubai’s exchanges reached $11.64 billion, the largest of any exchange in the region, according to Nasdaq Dubai.
Hamed Ali, chief executive officer of Nasdaq Dubai, said that the exchange is expected to further strengthen links with regional and global investors, and enhance services provided by Nasdaq to its issuers.
Gulf News
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