What is the Arab Energy Fund's plan in China?

The Arab Energy Fund plans to issue up to 10 billion yuan ($1.4 billion) in panda bonds in China's onshore market.

Why is TAEF issuing panda bonds in China?

TAEF aims to increase its visibility in markets with low penetration and secure cheaper funding amid growing trade ties with China.

What are panda bonds issued by TAEF?

Panda bonds are yuan-denominated debt securities issued in China's onshore market by non-Chinese entities like the Arab Energy Fund.

Home / Business and Economy / Arab Energy Fund Eyes China: $1.4B Panda Bond Plan

Arab Energy Fund Eyes China: $1.4B Panda Bond Plan

22 Jan

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Summary

TAEF secures China approval for up to 10 billion yuan in bonds.
This marks a significant step in strengthening Gulf-China economic ties.
The move aims to increase fund visibility in underpenetrated markets.

Arab Energy Fund Eyes China: $1.4B Panda Bond Plan

The Arab Energy Fund (TAEF) has received regulatory approval from China to raise as much as 10 billion yuan, approximately $1.4 billion, through yuan-denominated bonds. This approval paves the way for what could be one of the most substantial panda bond programs originating from the Middle East.

TAEF, a state-backed investor supported by Middle East sovereigns like Saudi Arabia and the UAE, plans to issue these bonds over a two-year period. This move signifies the Gulf's strategy to leverage favorable market conditions in China for more affordable financing.

The fund's chief financial officer indicated that the first sale of these panda bonds might occur later this year. Such an issuance would be TAEF's debut in the panda bond market, which involves yuan-denominated debt issued by non-Chinese entities within China's onshore market.