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Mon 10 Oct 2016 02:01 PM

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Chinese banking major lists $600m bond on Nasdaq Dubai

China Construction Bank is the fourth Chinese bank to list a bond on the exchange since 2014

Chinese banking major lists $600m bond on Nasdaq Dubai

The Hong Kong branch of China Construction Bank (CCB) has listed a $600 million bond on Nasdaq Dubai, the region’s international financial exchange. 

CCB is the fourth Chinese bank to list a bond on the exchange since 2014, underlining the expanding capital markets and economic ties between the UAE and China, a statement said.

Nasdaq Dubai said it provides Chinese and other Asian issuers with high regional as well as global visibility and a first class listing infrastructure.

CCB’s listing raised the total value of conventional bonds listed on Nasdaq Dubai to $11.39 billion.

On Monday, Alain Bejjani, CEO at Majid Al Futtaim Holding, rang the market-opening bell to celebrate the listing on Nasdaq Dubai of a $300 million tap under its existing $3 billion conventional bond programme.

The capital raised by the bond tap will support Majid Al Futtaim’s ongoing expansion in shopping malls, grocery, retail, residential communities, leisure, health and other sectors across the Middle East and Africa

The bond market froze up in the final quarter of last year as oil prices plunged below $30 a barrel, raising fears about the viability of Gulf economies in an era of cheap crude.

Since oil prices began sliding in mid-2014, GCC governments have mostly relied on running down financial reserves and issuing debt domestically to cover budget deficits.

That has begun to change in the last few months as reduced flows of petrodollars into GCC economies have tightened liquidity at banks and lifted interest rates. This is pushing both governments and firms to borrow abroad.

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