The Arab Energy Fund has secured regulatory approval to issue onshore Renminbi-denominated Panda Bonds in China, becoming the first multilateral financial institution from the MENA region to receive such authorization.
The approval was granted by the National Association of Financial Market Institutional Investors (NAFMII) following a registration review conducted in line with China’s interbank bond market regulations.
Under the approved program, The Arab Energy Fund may issue up to $1.4 billion (RMB 10 billion) in Renminbi bonds over a two-year period, with the flexibility to execute multiple tranches.
Access to China’s domestic bond market provides the Arab Energy Fund with a stable and direct source of Renminbi funding, strengthening its diversified funding strategy and supporting long-term capital planning. The program also reflects the Fund’s disciplined approach to financial management and strict regulatory compliance.
With a 50-year operating history, strong governance framework, and high international credit ratings, The Arab Energy Fund invests across both debt and equity. Its portfolio supports conventional energy, energy infrastructure, and broader energy solutions, underpinned by a balanced and sustainable growth strategy.
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.
Vicky Bhatia Chief Financial Officer The Arab Energy Fund
“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 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.
The Arab Energy Fund
The Arab Energy Fund is a unique multilateral partnership owned by 10 Arab oil-exporting countries, committed to advancing energy security and sustainability across the region.
While its core focus remains the MENA region, the Fund supports its member states’ energy interests through financing and investments in projects across more than 35 countries, spanning North America, Europe, Asia Pacific, Sub-Saharan Africa, and Latin America, in line with broader regional development objectives.
