OREANDA-NEWS. October 20, 2014. Agricultural Bank of China Limited (ABC) successfully issued RMB1 billion “RMB Emirates Bond” in Dubai through the global medium-term note plan. It then became the first Chinese-funded enterprise issuing RMB bonds in Middle East.

 This three-year bond with a coupon rate of 3.5% was issued by ABC Dubai Branch. ABC Hong Kong Branch and ABC International were the global coordinators of this bond issue.

The funds raised will be used to support the development of offshore RMB business in the Middle East to promote the economic and trade exchange between China and Middle East countries.

The RMB Emirates Bond issued by ABC, rated as A1 by Moody’s, was oversubscribed by international investors from the Middle East and other regions. This not only indicates that ABC’s international financial services are highly recognized by international investors, but also marks ABC’s another success in expanding the offshore RMB bond market. ABC has succeeded in issuing the first RMB bonds of Chinese-funded enterprise, namely “Treasure Land Bond” and “Rhine Bond” in Taiwan and Germany respectively.

Dubai is a member of the Gulf Cooperation Council (GCC) and the second largest emirate country of the United Arab Emirates (UAE). It is an important international financial center of the world where RMB business prospers. Issuing RMB bonds in Dubai will greatly promote RMB business development in the Middle East. The RMB assets accounted for more than 50% of the total assets of Dubai Branch.

ABC has attached great importance to the cross-border use of RMB. Since it launched the cross-border RMB business in 2009, transactions handled totaled to RMB3 trillion. ABC will continue to capitalize on its RMB capital strength and network advantages and actively participate in the development of the offshore RMB market in the Middle East, to provide better cross-border financial services for economic and trade exchanges as well as investment and financing in both China and the Middle East.