European Investors Can Now Access Chinese Green Bonds Through Luxembourg
Dou Shicong
/SOURCE : Yicai
European Investors Can Now Access Chinese Green Bonds Through Luxembourg

(Yicai Global) June 11 -- The Shanghai bourse has started cooperating with the Luxembourg Stock Exchange to ease European investors' access to the world's largest green bond market.

The first batch of 18 bonds listed in the environmentally-friendly interconnection program include state-owned power generations firms such as China Three Gorges and China Huadian, local news outlet Economic Daily reported. The total value of these debt securities stands at CNY23.1 billion (USD3.6 billion).

Under the interconnection scheme, the pair will offer international investors more transparent investment channels. The deal is in line with a one-year-old preliminary version of this contract, under which the pair agreed to showcase two new China-based bond products on their websites; SSE Green Corporate Bond Index and SSE Green Bond Index, which are both reviewed by independent third parties.

China led global green bond issuance last year with 66 deals that raised as much as USD24.9 billion between January and November, data from financial information provider Dealogic shows.

The interconnection scheme will act as a bridge between the Chinese and European markets via convenient information channels, said LuxEx's Chief Executive Robert Scharfe, adding that the mechanism will help attract more diversified investors.

The global green bond market has grown significantly in recent years, with new issuance almost doubling every year since 2013, Scharfe said separately to Asia Asset Management, adding that such fixed-income securities' issuance is expected to increase more than six times over the next two years to reach about USD1 trillion by 2020.

Editor: Emmi Laine

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Keywords: Shanghai Stock Exchange , Luxembourg Stock Exchange , Green Bonds , Environmentally Friendly Investing , China Huadian , China Three Gorges , LuxEx