Ministry of Finance offers and lists USD-denominated sovereign bonds in the Middle East for the first time

The Rule144A/Reg S issuance comprises two tranches including USD1.25bn 4.125% three-year bonds and USD750m 4.250% five-year bonds. The net proceeds from the sale of the bonds will be used for general governmental purposes.

The bonds were priced in Riyadh, Saudi Arabia on November 13, 2024. The bonds are listed on the Nasdaq Dubai and Hong Kong Stock Exchange. This is the first time for the MOF’s offshore sovereign bonds to be priced and listed in the Middle East. The offering received strong demand from the market with bids for the deal close to USD40bn, 19.9 times what was on offer.

Agnes Tsang, A&O Shearman partner, commented: “The offering of China’s sovereign bonds in the Middle East and listing of the bonds on Nasdaq Dubai reinforces the growing economic and financial collaboration between China and the Middle East. This landmark transaction not only opens new avenues for investment from Middle East investors but is also a testament to the robust financial linkages and mutual growth opportunities that exist between these regions. Our global capital markets expertise together with our Middle East offering enable us to work closely with our clients to explore new market opportunities.”

The A&O Shearman team was led by partner Agnes Tsang, with support from senior associate Jiayin Yu and associate Eileen Qu. Singapore partner Alexander Stathopoulos provided U.S. law advice. Dubai partner Anzal Mohammed and counsel Nazuma Hassan, and Saudi Arabia partner Hosam Ibn Ghaith assisted on Middle East related aspects.