The Arab Energy Fund Becomes the First Multilateral Financial Institution in the MENA Region to Receive Regulatory Approval for an Onshore Panda Bond Program

Saudi Arabia – 21 Jan 2025 – The Arab Energy Fund, a leading multilateral impact financial institution, has received regulatory approval to issue onshore Renminbi-denominated Panda Bonds in China, becoming the first multilateral financial institution in the MENA region to secure such approval.

The approval was granted by the National Association of Financial Market Institutional Investors (NAFMII) following a registration review process conducted in accordance with China’s interbank bond market regulations. The registered program allows The Arab Energy Fund to issue up to RMB 10 billion (USD 1.4 billion) in Renminbi bonds over a two-year period from the date of approval, with issuances permitted in multiple tranches.

Access to China’s domestic bond market provides The Arab Energy Fund with a stable and direct source of Renminbi funding, supporting its diversified funding strategy and long-term capital planning. The program is aligned with the Fund’s disciplined approach to financial management and regulatory compliance.

The Arab Energy Fund has a 50-year track record, strong governance standards, and a high international credit rating. The Fund invests across both debt and equity, supporting conventional energy, energy infrastructure, and broader energy solutions while maintaining a balanced growth strategy.

Vicky Bhatia, Chief Financial Officer, The Arab Energy Fund, said: “We would like to express our gratitude to the Chinese regulators for their constructive engagement and support throughout this process, which enabled The Arab Energy Fund to secure the Panda Bond program issuance approval. This milestone allows us to further diversify our funding sources by tapping into a deep pool of Chinese investors, while laying a strong foundation for closer collaboration between a highly rated multilateral financial institution from the MENA region and China’s capital markets.”

The Panda Bond program also supports deeper engagement with China’s financial markets and lays the groundwork for potential cooperation with Chinese financial institutions and investors, contributing to cross-border collaboration in energy finance.

The Arab Energy Fund’s entry into the onshore Panda Bond market underscores its role as a trusted multilateral partner and its active participation in global capital markets.