China’s Ministry of Finance announced on March 19 that it will soon issue its first RMB-denominated green sovereign bond in London, with an issuance size of up to 6 billion RMB. This marks China’s first sovereign green bond priced in its own currency.
Source: Securities Times
China’s Ministry of Finance announced on March 19 that it will soon issue its first RMB-denominated green sovereign bond in London, with an issuance size of up to 6 billion CNY. This marks China’s first sovereign green bond priced in its own currency.
Green, low-carbon development is critical for tackling climate change, advancing sustainable economic growth, and supporting China's high-quality development goals. Over the past five years, China's central government has allocated between 500 billion and 650 billion RMB annually to ecological protection and green initiatives. Financial experts and industry leaders have long advocated for issuing green sovereign bonds overseas, viewing it as an opportunity to enhance RMB internationalization, strengthen the offshore RMB market, expand China's green finance offerings, and attract a broader range of global investors.
Green sovereign bonds are widely used by developed economies such as the UK, Germany, and France to finance climate initiatives. As the world’s second-largest bond market, China has been steadily improving its financial market infrastructure. The Green Sovereign Bond Framework highlights that issuing green sovereign bonds abroad is aimed at demonstrating China’s commitment to sustainable finance, diversifying high-quality green bond offerings in global markets, and encouraging more Chinese entities to participate in green finance. This initiative is also expected to broaden investor participation and further integrate China into the global green financial ecosystem.
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