- China’s debut global green bond issuance set for Wednesday, worth 6 billion yuan ($825 million).
- Bond aims to attract international investors for China’s green infrastructure, including EV charging networks and national parks.
- Marks a significant step in China’s strategy to achieve carbon neutrality by 2060.
China will officially enter the global green sovereign bond market Wednesday, issuing its inaugural 6 billion yuan ($825 million) bond on the London Stock Exchange.
This issuance, anticipated for years, highlights China’s commitment to expanding its role in the rapidly growing $3 trillion global green bond market.
During a meeting with investors in London, Finance Ministry Director General Yu Hong and Deputy Director General Xing Chaohong detailed the offering:
- Two tranches: 3-year and 5-year maturities
- Fixed interest rates anticipated below 2%, dependent on investor demand
- Managed by eight banks from China and Europe
China’s move into global sovereign green bonds gained momentum earlier this year following discussions in Beijing between British Finance Minister Rachel Reeves and China’s Vice Premier He Lifeng on enhancing financial collaboration, particularly around climate and trade.
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China, currently the world’s largest emitter of greenhouse gases, intends to peak carbon dioxide emissions before 2030 and reach carbon neutrality by 2060. The finance ministry previously stated its aim was to “attract international funds to support domestic green and low-carbon development.”
Funds raised will specifically support projects aligned with China’s five green priorities:
- Climate Change Mitigation
- Climate Change Adaptation
- Natural Resource Conservation
- Pollution Prevention and Control
- Biodiversity Conservation
An investor at Tuesday’s briefing highlighted that the proceeds would notably be directed toward enhancing China’s electric vehicle charging infrastructure and developing national parks.
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