Bloomberg Facilitates ICBC Dubai to Accomplish First Swap Connect Trade in the Middle East

Bloomberg and ICBC Dubai (DIFC) Branch (“ICBC Dubai”) today announced that ICBC Dubai completed its first RMB interest rate swap (IRS) under the Swap Connect scheme, using Bloomberg’s Swap Connect solution. This was the first Swap Connect trade executed by an offshore investor in the Middle East region since the Swap Connect scheme commenced in May 2023. It marks the continued expansion of the Swap Connect, which was the first OTC derivatives trading link providing offshore investors access to China’s onshore derivatives markets.

ICBC Dubai, a branch of the Industrial and Commercial Bank of China (ICBC) – the world’s largest bank by assets – supports the financial needs of the clients in the Middle East. With the use of Bloomberg’s Swap Connect solutions, ICBC Dubai is now able to trade RMB IRS directly with onshore dealers in China’s interbank interest rate swaps (IRS) markets to meet the rising hedging needs of its clients.

” ICBC has been actively participating in the RMB internationalization, as well as strongly supporting the opening-up of China’s bond market to international investors. This transaction marks an exciting step forward in the way we serve the growing needs of our customers in the Middle East. We are proud to be the first institution in the region to execute the first RMB IRS trade using Bloomberg’s Swap Connect solution,” said Mr. Luo Wei, General Manager of ICBC Dubai. “This milestone trade enables us to better serve our clients who are seeking greater access to China’s financial markets and to better manage RMB interest rate risk. We look forward to strengthening our collaboration with Bloomberg and continuing to enhance our service capabilities.”

“We are excited to support ICBC Dubai in executing the first Swap Connect transaction in the Middle East,” said Katharine Furber, Global Head of Emerging Markets Trading Product at Bloomberg. “It is an important new chapter in the story of Swap Connect and testament to the value and need of the program, offering global investors the tools to hedge risk and, in doing so, increasing foreign participation in China’s bond market. We look forward to onboarding more participants in the Middle East and beyond.”

Bloomberg is a PBOC approved third-party electronic trading solutions provider for northbound Swap Connect. Bloomberg’s Swap Connect solution is accessible by eligible offshore market participants via Bloomberg Terminal to trade RMB IRS via Swap Connect, the OTC derivatives trading link between Mainland China and Hong Kong. The solution was launched in May 2023 and enhanced earlier this year to support IRS contracts with International Monetary Market (IMM) dates and unwinding (offsetting) existing contracts in global investors’ portfolios.

Bloomberg provides a range of innovative trade-related solutions around the world. It also offers a full suite of solutions for China’s bond markets and cross-border investment. For more information, please visit RMB-GO- on the Bloomberg Terminal.

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