ICBC places $713 million green bonds on Nasdaq Dubai

Nasdaq Dubai has listed $713 million of dual-currency green bonds issued by Industrial and Commercial Bank of China Limited through its Dubai International Financial Centre branch, adding another sizeable sustainable debt transaction to the exchange.

The offering was issued under ICBC’s $20 billion Global Medium Term Note Programme and comprises two three-year tranches carrying the theme China-Arab States Renewable Energy Cooperation. The first is a $300 million floating-rate note priced at the Secured Overnight Financing Rate, or SOFR, plus 35 basis points. The second is a CNH2.8 billion fixed-rate bond, equivalent to about $413 million.

ICBC said proceeds will be directed towards eligible green projects, including renewable energy, carbon-neutrality initiatives and sustainable infrastructure. Offering documents state that proceeds may be used to finance or refinance eligible green assets under the bank’s green bond framework, linking the transaction directly to its sustainable-finance programme.

Investor demand was strong across both currencies. Nasdaq Dubai said the dollar tranche was 3.8 times oversubscribed, with an order book of $1.2 billion, while the offshore renminbi tranche was 3.5 times oversubscribed with orders reaching CNH10 billion.

The dollar note’s final pricing represented a substantial tightening from initial guidance of SOFR plus 90 basis points during marketing. Earlier transaction details showed the senior unsecured tranche was reoffered at par, while demand was concentrated in Asia, which accounted for 83 per cent of the dollar book, with Europe, the Middle East and Africa representing the remaining 17 per cent.

The renminbi tranche was also reoffered at par after being marketed initially around the 2.15 per cent area. The two notes were rated A1 by Moody’s, in line with the rating assigned to the issuer for the transaction.

The green bonds are also intended for listing on the Hong Kong Stock Exchange and the London Stock Exchange’s International Securities Market, broadening their access to investors across several financial centres.

Nasdaq Dubai said the latest admission brings ICBC’s outstanding bond listings on the exchange to $4.24 billion across four issuances. The figure reflects the bank’s continued use of Dubai as an offshore funding and listing centre for international bond transactions.

Hamed Ali, chief executive of Nasdaq Dubai and Dubai Financial Market, said demand for both the dollar and renminbi tranches demonstrated investor appetite for environmental, social and governance-linked debt instruments. He said the deal also reflected the connection between China and international capital markets and Dubai’s role in cross-border fundraising.

Liu Hua, general manager of ICBC Dubai Branch, said the listing reflected the bank’s commitment to the UAE capital market and its broader green-finance strategy. He said ICBC had used green financial products to support environmental sustainability and projects linked to international economic cooperation.

The listing was marked by a market-opening bell ceremony attended by Zeng Jixin, China’s ambassador to the UAE, alongside Ali and senior representatives of ICBC and the exchange.

The transaction adds to a growing pool of sustainable debt listed in Dubai. Nasdaq Dubai said its total outstanding debt securities have exceeded $143.9 billion, comprising $98.4 billion of sukuk and $45.4 billion of conventional bonds. Environmental, social and governance-related listings account for $27.5 billion of that total.

The China-Arab States Renewable Energy Cooperation label also gives the transaction a cross-border policy dimension. China has publicly identified renewable energy, green development and investment cooperation as areas for expanded engagement with Arab states, including support for Chinese financial institutions participating in renewable-energy projects across the region.

The transaction also illustrates growing use of multiple currencies in Gulf debt markets, where issuers can tap separate pools of liquidity while maintaining a common financing framework. For ICBC, the offshore renminbi tranche provides access to investors seeking yuan-denominated assets, while the dollar tranche reaches the region’s established international fixed-income base directly.