Sharjah has successfully raised 2 billion renminbi—roughly $280 million—through a three-year Panda bond, marking another strategic move into China’s domestic debt market.
While the final interest rate remains under wraps, early indications on Monday suggested pricing in the 2.5%–3.2% range.
The bond was led by Bank of China, with Credit Agricole (China), JP Morgan Chase (China), ICBC, China Bohai Bank, Citic Securities, Export-Import Bank of China, and Shenwan Hongyuan Securities joining as co-leads.
Proceeds from the issuance will flow offshore, then be converted to dirhams or U.S. dollars, aimed at funding Sharjah’s budget needs, including infrastructure projects and other governmental expenditures.
Sharjah first ventured into the Panda bond market in February 2018 with a RMB 2 billion issuance, becoming the first Middle Eastern issuer to access China’s domestic bond landscape.
