China’s first green bond hits $1bn in London
The Agricultural Bank of China has announced the first “green bond” sale from a Chinese bank with $1 billion sold on Tuesday in London
The Agricultural Bank of China has announced the first “green bond” sale from a Chinese bank with $1 billion sold on Tuesday in London.
The bank is China’s third-largest lender and confirmed the dual currency bond deal had been finalised in the UK.
Green bonds are issued to fund clean energy projects and other climate friendly initiatives.
The 600 million yuan (£61 million) two-year yuan-denominated tranch of the bond was priced at 4.15 per cent.
The order book reached about 4.9 billion yuan from 71 accounts with Asian investors accounting for 94 per cent of demand with European providing the other investors.
Banks made up an 82 per cent share, with funds accounting for 12 per cent and private banks 6 per cent.
The dollar segments were a $400 million three-year tranche priced at 2.125 per cent and a $500 million five-year tranche at 2.75 per cent.
The bond will be listed on the London Stock Exchange, with the proceeds to fund environmental projects.
The Agricultural Bank of China International, Barclays, HSBC and J.P. Morgan are joint coordinators on the bond issue.
China and the UK agreed to a new collaboration deal in September that includes an expanded currency swap agreement and a feasibility study for a scheme to connect the London and Shanghai stock markets.
