The Industrial and Commercial Bank of China (ICBC), the world’s largest lender, is preparing to issue a multi-currency green bond focused on carbon neutrality, according to a term sheet. The proposed deal will be executed through the bank’s Hong Kong, Singapore, and Dubai branches.
ICBC intends to issue U.S. dollar-denominated bonds via its Hong Kong and Singapore branches, while offshore yuan bonds will be issued through its Dubai branch. The size and maturity details of the bond issuance were not disclosed in the term sheet or in any regulatory filings by the bank.
The planned green bond underscores ICBC’s continued efforts to support environmentally sustainable projects and align with China’s national carbon neutrality targets. However, the offering documents also caution against broader macroeconomic risks, particularly ongoing uncertainties stemming from U.S.-China trade tensions.
“There are uncertainties as to when and whether the trade disputes will be resolved and trade barriers lifted,” the bank stated in its offering materials. “These factors may materially impact the global and Chinese economies, potentially affecting our business, prospects, financial condition, and operating results.”
The warning comes even as the U.S. and China announced a temporary easing of trade tariffs this week. As part of the agreement, the U.S. has reduced its additional tariffs to 30% from 145%, while China has lowered duties on American imports to 10% from 125% for a period of 90 days. ICBC has not yet publicly commented on the bond deal.
