China Construction Bank Lists US$600 Million Green Bond on Nasdaq Dubai

By Lucia Brancaccio

On January 15, 2024, China Construction Bank (CCB) listed US$600 million in green bonds on Nasdaq Dubai, reinforcing its dedication to addressing the pressing global issue of climate change. This bond issuance not only demonstrates a financial commitment but also signifies the strengthening of China-United Arab Emirates (UAE) relations, emphasizing their shared commitment to fostering increased cooperation in green financing.

Nasdaq Dubai green bond listing

Nasdaq Dubai proudly marked a significant milestone on January 15, as it welcomed the listing of a US$600 million green bond issued by CCB’s Dubai International Financial Center (DIFC) Branch. This event, coupled with the successful issuances from the Hong Kong and Dubai branches, brought the total value of bonds listed on Nasdaq Dubai to US$2.45 billion.

Furthermore, as of writing this article, Nasdaq Dubai’s commitment to sustainability is displayed by the total value of environmental, social, and governance (ESG) issuances, reaching US$27.05 billion, with Nasdaq Dubai’s total listed debt on the exchange soaring to US$128.66 billion.

With the inclusion of this latest landmark listing, Nasdaq Dubai’s position as the leading marketplace for international issuers is strengthened while also highlighting its status as a hotspot for sustainable financial instruments.

Green bond purpose and functionality

Amidst the current global call to address climate change, investments in green bonds have emerged as a specialized initiative aimed at reducing carbon emissions.

Specifically, green bonds are a unique category of fixed-income securities issued by countries, institutions, and corporations, whose primary objective is to raise capital for projects that have environmental benefits, such as renewable energy initiatives, eco-friendly buildings, and resource conservation efforts.

In this context, CCB’s issuance of green bonds directed towards Nasdaq Dubai will allocate funds to regional initiatives that prioritize renewable energy, energy efficiency, seawater desalination, and emission reduction. These projects are crucial to the bank’s strategy of supporting environmentally sustainable economic growth in the UAE and its neighboring areas.

The recent CCB listing, in particular, highlights a sustainable financing synergy between China and the UAE, showcasing Nasdaq Dubai’s pivotal role in promoting environmentally responsible investment practices on the global stage. This trend follows UAE authorities’ efforts to encourage companies to borrow money for environmentally friendly initiatives; the emirate of Dubai hosted the COP28 climate conference, which took place between November 30 to December 13, last year.

Chinese issuers leverage Nasdaq Dubai for listing green bonds

Meanwhile, the cumulative value of outstanding debt from Chinese issuers on the exchange, spanning across 22 issuances, now stands at US$11.95 billion.

During the issuance acceptance ceremony on January 15, H.E. Li Xuhang, Consul-General of the People’s Republic of China in Dubai, appreciated the Chinese banking institutions promoting green finance.

A notable contributor to this initiative is the Industrial and Commercial Bank of China (ICBC), which listed green bonds valued at US$2.03 billion on Nasdaq Dubai. ICBC has now emerged as the biggest issuer of green bonds on Nasdaq Dubai, with a total of US$6.93 billion. Furthermore, it also holds as the top Chinese issuer in this market, contributing a total of US$7.43 billion.

With such high standards to hold up to, Li Xuhuang especially conveyed anticipation for the CCB to continue its impactful contribution to energy transformation in the region.

Addressing this, CCB’s SEO Yuan Shengrui declared that this issuance presents an opportunity to stimulate high-quality economic growth. He emphasized the role of the capital market as a bridge, fostering cooperation in green sustainable development and energy transformation between China, the UAE, and the wider region.

With comprehensive financial products and services, the dedicated CCB branch expressed its commitment to supporting more Chinese corporations in participating in green energy projects, promoting environmental protection and energy transformation.

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