China Development Bank (CDB) has issued its first green bond, with the proceeds going to fund renewables projects, such as wind power and solar energy.
The 20bn Yuan (€2.6bn), three-year bond has a coupon rate of 3.07% and was offered to global investors through the Bond Connect scheme today.
China International Capital Corporation (CICC) acted as the lead underwriter.
The bond is the first ‘carbon neutral’ green bond certified by the Climate Bonds Initiative (CBI).
Shanghai Clearing House will include the bond as a primary constituent in its newly-launched Carbon Neutral Bond Index, which serves as a main reference for domestic and international investors.
CICC said it hoped that the issuance will showcase China’s green policies and financial products to the international investors and attract global participation in China’s green market.