Sharjah raised RMB 2 bn (USD 280.3 mn) from a three-year Panda bond, at an initial price ranging between 2.5-3.2% on Monday, Zawya reported. The final coupon has not yet been revealed, though initial price thoughts were in the 2.5-3.2% range.

This is the second time for the emirate to tap the Panda bond market, after raising a RMB 2 bn bond (USD 316 mn) in February 2018, making it the first in the Middle East to do so.

Where the money will go: The emirate will mainly use the proceeds, which will be remitted offshore and converted into AED or USD, for financing budget expenditures and infrastructure projects.

ICYMI- The sale coincides with the emirate’s plans to secure an RMB-denominated syndicated loan worth up to USD 400 mn, at a fixed interest rate of 2.6% for a five-year term. The loan — which comprises an initial amount of USD 250 mn and a greenshoe option to raise it by USD 150 mn — will be used for general corporate purposes and is expected to be finalized this month.

Part of a wider trend in the Gulf: The bond sale along with the planned syndicated loan are part of a broader trend among Gulf economies looking to diversify their capital sources by turning to Asian lenders. Borrowers are benefiting from strong demand among Asian banks to lend to highly-rated entities, such as sovereign and quasi-sovereign institutions— particularly amid a slowdown in transaction activity within Asia.

“Asian participation has been very strong in regional paper in 2025,” Nour Safa, head of MENA Debt Capital Markets at HSBC said recently, adding that Asian investors are trying to diversify their holdings away from home and see the GCC as a safe haven instrument. Tighter spreads and strong oversubscriptions also point to sustained investor demand for Gulf paper, she said.

ADVISORS- Bank of China acted as the lead underwriter and bookrunner. Credit Agricole (China), JP Morgan Chase (China), Industrial and Commercial Bank of China, China Bohai Bank, Citic Securities, Export-Import Bank of China and Shenwan Hongyuan Securities were joint lead underwriters and bookrunners.

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