The Arab Energy Fund ( TAEF ) has attained regulatory approval to launch an onshore panda bond programme in China, marking a regulatory milestone for a multilateral institution headquartered in the Middle East and North Africa ( MENA ) region.

The approval authorizes the Riyadh-headquartered fund to issue renminbi ( RMB )‑denominated bonds onshore, broadening its access to diversified capital markets and strengthening its capacity to finance regional energy infrastructure and transition projects.

This development signals a strategic expansion of TAEF’s funding channels by aligning with China’s capital market infrastructure, which has historically posed robust entry barriers for foreign entities.

By securing this regulatory clearance, TAEF positions itself to leverage RMB liquidity, a resource increasingly central to global sustainable finance flows, without the constraints that previously limited direct participation by MENA financial institutions.

Market analysts view the onshore panda programme as a complementary avenue, alongside TAEF’s existing international debt issuances, potentially reducing currency mismatches in financing cross‑border energy projects.

The fund’s broader mandate includes supporting energy security, sustainable infrastructure and value chain development across the MENA region.

The regulatory approval also, TAEF states, underscores the deepening financial ties between Asian and Middle Eastern markets within a context of escalating cross‑regional investment and policy cooperation.

“The panda bond programme issuance approval,” says Vicky Bhatia, the fund’s chief financial officer, “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.”