(Yicai Global) Nov. 14 --Foreign investors will be able to invest in China's environmental projects after the central bank issued the first ever 'green covered bond'. The bond is likely to prove popular with controllers of funds mandated to invest in sustainable or eco-friendly projects.
As a pilot project of the green finance research group, the bond issuance aims to raise USD500 million. The three-year US dollar-denominated fixed-rate bond offers investors a coupon rate of 1.875 percent.
The bank has underwritten USD2.52 billion of green bonds since 2012, making it the biggest underwriter of such bonds among Chinese lenders. It has independently or jointly underwritten 12 green bonds worth around USD2.4 billion this year.
In Januarythis year, China's central bank and the Bank of England jointly set up a G20 green finance research group to encourage commercial enterprises to strengthen green finance innovation and promote connectivity between onshore and offshore green bond markets.
China has led the world in the sale of green bonds so far this year. As of July, it had issued GBP9.02 billion (USD11.23 billion) worth of green bonds out of the GBP25.69 billion issued globally.