Bank of China issues $3 billion equivalent green bond

LUXEMBOURG - Bank of China (BOC) Luxembourg Branch, together with the BOC New York Branch, on Tuesday issued the first BOC Green Bond, with the total amount equal to $3 billion.

The structure of the green bond includes fixed rate and floating rate for two years, three years and five years, and denominated in Chinese currency renminbi, US dollar and euro. The bond issued by the BOC Luxembourg Branch will be listed on the Luxembourg Stock Exchange while the bonds issued by the New York Branch will be listed on the Hong Kong Stock Exchange.

As of Tuesday, the subscription has reached over three times of the initially planned amount, and 76 percent of the investment of the euro tranches was from European investors.

Green bond is one of the fastest expansion bond category in international market. The funds raised by green bond will be exclusively used to support environmental-friendly green projects.

The BOC green bond issued on Tuesday is leading the market in terms of both size and the number of tranches among its peers.