Bank of China Sustainable Bonds valued at USD 2.2 billion listed in London

(Photo courtesy of Bank of China London Branch)

LONDON, Nov. 12 (People’s Daily Online) –Bank of China listed its sustainable bonds, valued at 2.2 billion USD, at the London Stock Exchange on Nov. 12, 2021, further demonstrating the bank’s commitments and efforts towards green finance.

Fang Wenjian, General Manager of the Bank of China, stated in his speech at the listing ceremony that the most recently issued and innovative Sustainability Re-linked Bond (SRLB), which is one part of the listing, is an “unique transaction that provides a strong link between the sustainable bond and sustainability-linked loan markets, and represents a first for the ESG finance market”.

(Photo courtesy of Bank of China London Branch)

This event also marks the listing of a number of other Bank of China sustainable bonds, including two ‘Blue bonds’ linked to water quality projects, two ‘Transition bonds’ linked to cleaner energy transition projects and a bond issued to promote biodiversity.

Fang noted that the Bank of China has long been a pioneer in green finance and industry standards. “We actively support the ‘Belt and Road’ green investment principles. Earlier this year, Bank of China officially joined the UN Principles for Responsible Banking (PRB), set out an Action Plan for helping to reach the national goal of ‘Peak Carbon Emissions and Carbon Neutrality’, and signed up to the TCFD,” he said.

(Photo courtesy of Bank of China London Branch)

Starting from Q4 this year, the bank will stop financing new coal mining or coal powered projects in overseas markets, and will provide a minimum of 1 trillion yuan to support green industries over the period of the 14th Five Year Plan (2021-2025), added Fang.

The bond issuance illustrates the ways in which financial institutions, and the Bank of China in particular, are working hard to harness capital markets and find approaches to more directly channel global capital flows to those projects and companies that are genuinely working towards a green and more sustainable future.