ADNOC is reportedly planning to issue a USD $2B bond in Chinese yuan, in an initial report, citing undisclosed sources at Bloomberg.
Sources suggest up to 14B yuan – the equivalent of $2B – will be raised via dim sum bonds.
Dim Sum Bonds – What are They?
Dim sum bonds are denominated in Chinese renminbi but issued in Hong Kong than mainland China. They are used by international issuers to tap yuan liquidity and diversify funding sources outside dollar markets.
In October, Sharjah reported to be nearing completion of its first Chinese yuan denominated loan valued at $400M.
ADNOC raised up to $4B from its first ever bond sale in September 2024. The state-owned oil giant raised a subsequent $1.5B via a sukuk issuance in April 2025.
Beijing Seizes the Opportunity
Geopolitical uncertainty – driven by President Trump’s use of tariffs as a foreign policy tool – is speeding up the transition to non-dollar alternatives. President Xi Jinping published, in China’s Communist Party’s ideological journal last weekend, steps to turn the renminbi into the default global currency.
China should “establish a strong currency widely used in international trade and foreign exchange,” with a “powerful central bank” and the ability to attract investment and influence global pricing,” the Chinese premier said.
A Catalyst in the Making
Headwinds facing the U.S. dollar precede Trump’s presidency yet the tariff war is accelerating de-dollarisation across the GCC, China and the EU.
The reality of de-dollarisation will be a long-term step, one where investors still use the dollar, but other currencies will become real alternatives in settling trade disputes and being a secure store of value at times of economic uncertainty.
GCC states became China’s number one trading partner in 2024. Gulf-China trade is expected to reach USD $75B by 2028, whilst UAE banks – namely FAB UAE – are developing cross-border RMB payment systems and local currency clearing.
Last year the UAE Central Bank and Cross-Border Interbank Payment System of China signed a MoU in the payment infrastructure landscape, aiming at strengthening joint cooperation in cross-border capital payments.
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