China’s Ministry of Finance launched its first-ever sovereign green bonds on Thursday, raising 6 billion yuan ($830 million) to reinforce the country’s commitment to sustainable finance and advance its currency’s internationalization.

The issuance, which comprises three-year and five-year bonds, was admitted to trading on the London Stock Exchange’s International Securities Market.

The deal is part of China’s broader strategy to support green and sustainable development. The country is aiming toward its carbon peaking goal of 2030 and carbon neutrality by 2060.

“This milestone reflects China’s dedication to expanding its green financial markets and attracting global investors to support sustainable initiatives,” the Chinese Finance Ministry said in a statement to the LSE.

Sovereign Green Bond Framework

The green bonds were issued under China’s Sovereign Green Bond Framework, released in February, marking the first time the country has structured a sovereign green bond framework assessed by domestic and international second-party opinion providers.

The framework aligns with both China’s Green Bond Principles and the International Capital Market Association’s Green Bond Principles.

China has been increasing its focus on sustainable development since 2013, embedding ecological goals into its national governance framework.

The latest green bond issuance is expected to encourage further participation from domestic issuers and diversify the global green bond market.

Key Market Participants

Bank of China, Bank of Communications, Barclays, China International Capital Corporation, Crédit Agricole CIB, HSBC, ICBC, and Standard Chartered Bank acted as joint lead managers and joint bookrunners for the transaction.

Crédit Agricole CIB and Bank of China served as green structuring advisors.

The issuance follows a series of green finance initiatives by China, which seeks to solidify its position as a global leader in sustainable investing while promoting the international use of the yuan.

Also Read:

China Leads Global Cleantech Boom with $100B in Overseas Investments: Report