China Issues First Offshore RMB-Denominated Sovereign Green Bond on London Stock Exchange.
On April 3rd, China successfully issued its first offshore renminbi-denominated sovereign green bond on the London Stock Exchange (LSE), marking a significant step in the country’s efforts to promote green finance on a global scale.
The bond offering totaled 6 billion yuan (approximately $833.33 million U.S. dollars), comprising two tranches. The first is a three-year tranche of 3 billion yuan with an interest rate of 1.88%, and the second is a five-year tranche of 3 billion yuan with an interest rate of 1.93%. Both yields are lower than those of comparable treasury bonds in the secondary market of the Hong Kong Special Administrative Region.
In addition, the issuance attracted robust demand from international investors, with total subscriptions reaching 41.58 billion yuan—6.9 times the issued amount. Notably, investors with a focus on green and sustainable assets accounted for approximately 22% of the total order book, underscoring the appeal of China’s green finance initiatives.
Ahead of the listing, Reuters noted that a Chinese sovereign bond, issued in London—a leading global financial hub- had been widely anticipated, reflecting China’s growing economic influence and its commitment to sustainable development.
Additional reporting from Xinhua and China Daily.
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