China launches its first yuan bond in Middle East-fence post, fence, wire mesh
China has expanded its offshore yuan market to a new region by issuing the first yuan bond in Dubai.
The Agricultural Bank of China, the country’s third-largest bank, launched the listing of the one billion yuan (about US$163 million) "Emirates bond" on Nasdaq Dubai on September 21.
The three-year bond, which is part of the bank’s global mid-term bond plan, has a 3.5-percent coupon rate. Although the rate is lower than averaged market readings, traders said that several local Emirate banks had invested in the bond. The local subscription was about one fourth of the total bond value.
Ratings agency Moody’s gave the bond the A1 rating at the initial evaluation.
