Sharjah Issues Second Sovereign Panda Bond in China's Interbank Market
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The Emirate of Sharjah, part of the United Arab Emirates (UAE), has successfully issued its second sovereign Panda bond, raising RMB 2 billion (approximately USD 275 million) in China's interbank market with a three-year maturity, according to the Bank of China, the lead underwriter and bookrunner.
This marks Sharjah's return to China's domestic bond market after its debut in 2018, when it became the first Middle Eastern sovereign issuer to tap the onshore renminbi market. The renewed issuance highlights the growing financial connectivity between China and the Middle East, and reinforces the UAE's role as an early and active participant in the Belt and Road Initiative (BRI).
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Economic and financial cooperation between China and the Gulf region has deepened steadily in recent years. Sharjah’s latest Panda bond demonstrates both the emirate's confidence in China's capital market infrastructure and its strategic intent to diversify funding sources in renminbi. For investors, the offering provides a rare opportunity to gain sovereign exposure to a Gulf issuer through local-currency instruments.
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Panda bonds—RMB-denominated bonds issued by foreign institutions in China—have evolved into a cornerstone of China's financial openness. The Bank of China has played a pioneering role in this space, building a global underwriting and distribution network that connects its headquarters with major bond hubs in Hong Kong, London, Singapore, and Luxembourg.
In recent years, the bank has facilitated several market firsts, including the first sovereign Panda bonds from South America, North America, Europe, and Africa, as well as the first sovereign green Panda bond and the largest single sovereign issuance to date.
According to official data, by the end of September 2025, the Bank of China had arranged RMB 140 billion in Panda bond financing for issuers from Belt and Road countries. In total, it has supported over 70 foreign institutions in issuing nearly 300 Panda bonds, with a combined value exceeding RMB 585.6 billion.
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For global investors, Sharjah's renewed presence in China's onshore market is a meaningful signal. It underscores both the growing international acceptance of the renminbi as a funding and reserve currency, and China's commitment to broadening access to its fixed-income market.
With its strong sovereign credit profile and diversified funding approach, Sharjah's transaction may also encourage other Middle Eastern and emerging-market sovereigns to explore the Panda bond route—expanding the investor base and deepening cross-border capital market linkages.
As China continues to refine regulatory frameworks and enhance transparency in its bond market, the Panda bond platform is increasingly viewed not just as a financing channel, but as a bridge between international capital and China's domestic liquidity ecosystem—a role that institutions like the Bank of China continue to shape with global reach and local expertise.
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