China has successfully issued its inaugural sovereign green bonds, valued at RMB 6 billion (approximately $825 million), on the London Stock Exchange (LSE). This landmark issuance, comprising 3-year and 5-year maturities, signifies a pivotal step in the internationalisation of the renminbi and underscores China’s commitment to sustainable development.
The bonds were issued under China’s Sovereign Green Bond Framework, introduced in February 2025. This framework aims to diversify the global green bond market, encourage domestic issuers to participate, and attract further investment into green finance. It aligns with both Chinese and international green bond principles, reflecting China’s dedication to environmental sustainability.
The issuance ceremony at the LSE was attended by China’s Vice-Minister of Finance, Liao Min, and the UK’s City Minister, Emma Reynolds. Liao Min expressed optimism about deepening financial cooperation between China and the UK, highlighting the strong financial ties established over the past four decades. He remarked, “Both sides can work together closely. This is a very sort of ‘win-win’ situation for both sides. I’m quite optimistic about our co-operation in economic, financial areas.”
The proceeds from these green bonds are earmarked for projects aimed at climate change mitigation and adaptation, natural resource conservation, pollution prevention, and biodiversity preservation. Specific initiatives include the development of China’s electric vehicle charging network and the expansion of national parks.
This issuance follows a series of high-level diplomatic engagements between the UK and China, reflecting a mutual interest in strengthening economic ties and collaborating on climate change initiatives. UK Chancellor Rachel Reeves and Chinese Vice-Premier He Lifeng previously discussed pragmatic cooperation on financial services, trade, investment, and climate issues, leading to agreements worth £600 million.
The joint lead managers and bookrunners for this issuance included Bank of China, Bank of Communications, Barclays, China International Capital Corporation, Crédit Agricole CIB, HSBC, ICBC, and Standard Chartered Bank. Crédit Agricole CIB and Bank of China also served as Green Structuring Advisors.
This development marks a significant milestone in China’s green finance journey, reflecting its commitment to achieving carbon peaking by 2030 and carbon neutrality by 2060, while fostering international collaboration in sustainable development.
