Bank Of China Issues Green Bonds Worth $3 Billion

The year is far from being over, yet China has already topped its 2015 green bond issuance, which is something that global rating agencies had predicted.

Bank of China recently raised around $3.03 billion by issuing multi-currency green bonds. The bonds were issued in US dollars, Euros, and Chinese Yuan, and reportedly received a spectacular response. The Bank managed to raise $2.25 billion, €250 million, and 1.5 billion yuan, totaling around $3.03 billion. According to media reports, the bonds were massively oversubscribed, with prospective investors ready to pour as much as $8 billion.

The Chinese central bank has set a quota system for banks and financial institutions to raise up to 300 billion yuan (over $45 billion) this year.

Earlier this year, the China Industrial Bank and Shanghai Pudong Development Bank raised a total of just over $3.5 billion through two separate green bond issues. The China Industrial Bank raised 10 billion Yuan ($1.52 billion) by offering investors instruments at a coupon rate of 2.95% and maturity of 3 years. Shanghai Pudong Development Bank managed to raise 20 billion Yuan ($3 billion) offering instruments at the same coupon rate and maturity duration.

The China Industrial Bank and Shanghai Pudong Development Bank have a quota of 50 billion Yuan ($7.6 billion) each.

Wind energy firm Xinjiang Goldwind Science & Technology received investment interest worth US$1.4 billion for a US$300 million bonds issue. The Agriculture Bank of China issued its first green bonds in London and raised around $1 billion, with the dual currency bonds to be listed on the London Stock Exchange.

China witnessed issuance of just over $1 billion worth of green bonds in 2015. However, global credit rating agency Moody’s expects a sharp boom in the issuance from China in 2016.