China issued a renminbi-denominated sovereign green bond on the London Stock Exchange on Thursday, marking its first overseas issuance of such a bond.
The 6-billion-yuan ($825-million) deal comes in two parts: a 3-billion-yuan bond with a three-year term at an interest rate of 1.88 percent, and another 3-billion-yuan bond with a five-year maturity at an interest rate of 1.93 percent.
Both rates are lower than the yields on comparable treasury bonds in the secondary market in the Hong Kong Special Administrative Region.
The London offering spurred strong demand from international investors, with total subscriptions hitting 41.58 billion yuan, 6.9 times the issuance value. Orders from green and sustainable-focused investors made up about 22 percent of the total order book.
A Chinese global bond, especially one issued in London, one of the world’s major financial centers, had been long anticipated, given China’s economic stature.
Source: Chinadaily
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