Bank of China’s Paris branch priced a triple-currency “climate bond” worth $1.5bn on Thursday, the bank’s third green bond issued to international markets over the last 18 months.
Chinese corporations and financial institutions are the world’s top issuers of green bonds, which are debt instruments devoted to financing environmental projects. The proceeds of Thursday’s sale will be used to finance wind power projects in France and Britain as well as 15 subway projects in China, according to BoC. The deal is certified by the Climate Bond Initiative, a London-based advocacy group that sets standards for green finance.
The sale by BoC, China’s fourth largest bank by assets, consisted of dollar, euro and offshore renminbi tranches worth, respectively, $500m, €700m, and Rmb1bn. The sale generated $3.8bn worth of orders, with the euro tranche most in demand, according to BoC.