Linklaters advised the Managers in connection with the CNY 1 billion 3.50%. Notes due 2017 issued by Agricultural Bank of China Limited Dubai Branch, under Agricultural Bank of China Limited’s US$ 15 billion Medium Term Note Programme. Agricultural Bank of China is China’s third largest by assets. This transactions marks the first Reminbi offering in Dubai by a non-Dubai entity and the first Chinese fixed income bond on an Arab stock market.
One of the stated aims of the transaction was to contribute to the continuing global expansion of the Chinese currency.
The Notes were sold to offshore investors pursuant to Regulation S and professional persons in accordance with the Dubai Financial Services Authority (DFSA) rules.
Hwang Hwa Sim, one of the lead partners on this transaction commented:
“Looking at the way the RMB settlement has developed globally – Hong Kong, Singapore, Australia, Taiwan, Continental Europe and London it is no surprise that Dubai has emerged as the regional hub for the Middle East. The growing trade and investment links between the Gulf countries and China have created an opportunity for Dubai to become a payment clearing centre for RMB in the region. Dubai is well placed geographically and economically to build the presence of the Chinese currency across the Middle East and North Africa.”
Jonathan Fried, the lead Dubai partner on this transaction said:
“We are very glad to have acted on this benchmark transaction – a real milestone both for ABC’s Dubai Branch and of course for the rapidly expanding Dubai Financial Market and NASDAQ Dubai exchange. Linklaters has been at the forefront of DIFC listings for a number of benchmark sukuk and conventional instruments, in the process developing a close working relationship with the relevant regulators, and we were able to bring this experience to bear on this, the first listing here by a Chinese issuer.”
The Linklaters team was led by capital markets partners Hwang Hwa Sim (Hong Kong) and Jonathan Fried (Dubai) with assistance from Managing Associate Jini Lee in Hong Kong and Associate Leah Weldon in Dubai.
Source: www.linklaters.com
