China Launches Its First Green Sovereign Bond with London Listing Target
China has launched its first green sovereign bond, targeting CNY 6 billion. Bonds will have 3-year and 5-year maturities with yields of 2.3% and 2.35%. The listing will occur in London as part of strengthening ties with the UK and accessing Europe’s sustainable debt market.
China has initiated its first green sovereign bond offering, seeking to raise up to CNY 6 billion. This offering features bonds with maturities of three and five years, yielding 2.3% and 2.35%, respectively, and they are expected to be priced imminently.
Furthermore, the bonds will be listed in London, highlighting China’s intent to solidify its financial relations with the United Kingdom and to tap into Europe’s significant sustainable debt market. This initiative is a direct result of commitments made by the UK Chancellor during his January visit to Beijing, which emphasized the importance of enhancing financial collaboration.
This launch is consistent with China’s larger strategy of increasing its overseas bond offerings, evidenced by recent sales in Saudi Arabia and Paris. It also plays a crucial role in China’s ambition to achieve decarbonization, with a commitment to peak its greenhouse gas emissions by 2030.
In conclusion, China’s inaugural green sovereign bond offering signifies a strategic effort to strengthen its financial ties with the UK while addressing its sustainability goals. The targeted listing in London not only facilitates access to the European sustainable debt market but also reflects China’s commitment to decarbonization and international financial cooperation. This initiative marks a pivotal step in China’s broader environmental and financial strategies.
Original Source: www.tradingview.com
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