Nasdaq Dubai Welcomes Historic First Yulan Bond Listing from Bank of China

A CNH2 billion two-year fixed-rate bond marks a milestone in the exchange's expanding role as a bridge between Chinese financial infrastructure and global capital markets, with strong international investor demand driving yields significantly tighter than initial guidance.

The listing of Bank of China’s Yulan Bond on Nasdaq Dubai represents a defining moment in the deepening financial connectivity between the People’s Republic of China and the broader Middle Eastern investment landscape. This CNH2 billion two-year fixed-rate note, which matures in October 2028 and carries an A credit rating from Fitch Ratings, is the first Yulan Bond to join the exchange’s growing roster of cross-border issuances.

The transaction demonstrated considerable appetite among regional and international investors, with final yield pricing settling at 1.60 percent, a notably tighter outcome than the initial guidance of 2.10 percent. This 50 basis point improvement reflects confidence in both the issuer and the evolving appetite for renminbi-denominated fixed income in global markets.

The bond’s dual listing across Nasdaq Dubai and the Hong Kong Stock Exchange embodies a broader shift towards seamless multi-market access for investors. Through registration and settlement via the Shanghai Clearing House and international clearance by Euroclear, the Yulan Bond follows internationally recognised custody practices, enabling global investors to transact directly without the traditional friction that once characterised cross-border transactions.

Zeng Jixin, Ambassador of the People’s Republic of China to the UAE, marked the listing by ringing the market-opening bell, accompanied by Ou Boqian, Consul-General in Dubai, Hamed Ali, Chief Executive of Nasdaq Dubai and Dubai Financial Market, and senior Bank of China executives. The ambassador emphasised the issuance’s significance in promoting cross-border renminbi usage and strengthening the linkages between Chinese financial systems and international markets.

The listing builds on Nasdaq Dubai’s recent expansion of its global reach, whilst reinforcing the exchange’s position as a gateway for debt issuance and cross-border investment. Total outstanding debt on the exchange now exceeds USD145 billion, with cumulative Chinese debt activity alone surpassing USD31.9 billion. This growth reflects the exchange’s increasingly sophisticated infrastructure and its appeal to both Asian and Western capital markets participants.

In September 2026, the Dubai Financial Services Authority, Nasdaq Dubai, the Hong Kong Monetary Authority and Hong Kong Exchanges and Clearing Limited established a Strategic Working Group to explore further avenues for cross-border listings, market connectivity and multi-currency debt issuance, signalling a sustained commitment to deepening these institutional relationships.

What it means for Abu Dhabi

For the Emirate of Abu Dhabi and the wider UAE, this listing underscores the nation’s strategic positioning as a crucial node in global financial networks. The transaction demonstrates how the UAE’s regulatory framework and market infrastructure attract sophisticated international issuers and investors, whilst fostering deeper economic ties with key trading partners.

The expansion of renminbi-denominated debt products available on Nasdaq Dubai creates fresh avenues for UAE investors and institutions to diversify into Chinese financial assets, further supporting the region’s role in the internationalisation of the Chinese currency. This development complements ongoing efforts to strengthen China-UAE economic and trade cooperation through local-currency settlement mechanisms and innovative financial products.

Source: UAE News Agency (WAM)

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