China Sells USD599.3 Million in First Green Sovereign Bonds in Canada

Résumé détaillé

(Yicai) Nov. 12 -- China's Ministry of Finance issued the first CNY4 billion (USD599.3 million) in offshore green sovereign bonds in Canada, drawing record-high subscriptions for…

(Yicai) Nov. 12 -- China's Ministry of Finance issued the first CNY4 billion (USD599.3 million) in offshore green sovereign bonds in Canada, drawing record-high subscriptions for offshore yuan-denominated sovereign bonds in recent years.

The sovereign green yuan bond sale, made on Nov. 9, attracted widespread attention and active participation from investors from multiple regions, with orders reaching CNY54 billion (USD8.1 billion), or 13.5 times the issued amount, David Yim, head of capital markets for China and North Asia and managing director at Standard Chartered, the co-lead underwriter, told Yicai.

This was not only the first sovereign bond issued by the finance ministry in Canada, but also the first offshore yuan-denominated green sovereign bond issued in North America, including CNY2 billion three-year bonds with an interest rate of 1.4 percent and CNY2 billion five-year bonds with an interest rate of 1.5 percent.

"The booming subscriptions also showed that the international capital market thinks highly of China's sovereign credit and is firmly confident in the long-term investment value of yuan-denominated assets," said Jerry Zhang, global head of Chinese yuan commercialization and banks and broker dealers at Standard Chartered.

"China has been accelerating the issuance of green sovereign bonds, with two in London and Hong Kong earlier achieving oversubscription," noted Wang Yunfeng, president and chief executive officer of HSBC Bank China. "The country's green assets are becoming an increasingly important option in the global sustainable investment landscape, attracting more international capital focused on environmental, social, and governance to enter the offshore yuan green asset pool, working together to promote sustainable development."

HSBC was the co-lead underwriter and co-bookkeeper for the sovereign green bond issuance in Canada.

In addition, the latest bond sale sends a clear signal that China continues to expand its financial opening-up and steadily…

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