London Branch of BoC, 4th Biggest Bank in the World, issues 2nd Certified Green Bond
Continuation of offshore green issuance program
Bank of China's latest green bond, this time from its London Branch is an expansion of its offshore bond program that started in 2016.
The USD1bn Climate Bonds Certified green bond was twinned with a Hong Kong branch HKD3 billion (USD380 million) Sustainability Bond, a first in the Asian market.
BAML, BoC, BNP Paribas, Citicorp, Commerzbank, Credit Agricole CIB & HSBC acted as joint lead managers on the green bond deal.
Eligible green projects include renewable energy, energy efficiency, pollution prevention, clean transportation, sustainability water and wastewater management, and green buildings.
BoC is the oldest bank in China and the fourth largest in the world. This latest green bond follows their November 2017 USD1.45bn equivalent Climate Bonds Certified issuance, and is the fourth offshore green bond from BoC since their June 2016 market debut. Overall the Bank of China has issued over USD6bn of offshore green bonds in two years.
This series from BoC and growing issuance from other Chinese banks and corporates is a reflection of leading financial institutions gearing up to meet the capital demands of large-scale environmental and infrastructure projects.
Sean Kidney, CEO, Climate Bonds:
“China was No2 spot in our Top 10 list of global issuers for 2017. There’s more to come as the major Chinese Banks increase their green programs."
The Last Word
But let’s look ahead.
The big Chinese Banks are also the world’s biggest banks. They dominate the leader board. Increasingly they are going offshore, seeking institutional capital, often with CBI Certified green bonds.
Both developments are to be encouraged.
More of the world’s top 100 banks issuing green bonds and following best practice in 2018 would have a huge ripple effect. One the that could make a green wave to 2020.
'Till next time,
P.S. Want to learn more how big banks can support large-scale green investment? Hurry and register for our webinar Green Infrastructure Investment Opportunities in Indonesia. Don’t miss it!