Crédit Agricole CIB issues solidarity-based offshore Renminbi note to empower nature conservation through green finance innovation
During the first quarter of 2025, Crédit Agricole CIB successfully priced an approximately RMB2.5 billion solidarity-based note in the offshore Renminbi market that complies to the International Capital Market Association (ICMA) and the Crédit Agricole Group Green Bond Framework. This transaction was oversubscribed by leading institutional investors focused on ESG investment in China, including Shanghai Pudong Development Bank, Postal Savings Bank of China, and the Bank of Shanghai.
Different from conventional green bonds, Crédit Agricole CIB launched a ‘solidarity-based’ structure in this solution, which binds proceeds of the note with ecological protection and governance actions in China. This innovative product also features a closed-loop product lifecycle (fund raising – ecological investment – environmental returns) to offer institutional investors high-quality assets with both financial and environmental benefits.
As part of the proceeds, Crédit Agricole CIB will work with institutional investors to carry out extensive tree planting projects in Inner Mongolia and Ningxia in cooperation with the Million Tree Project, a project focuses on mitigating climate change by planting trees in China. The project is expected to plant 22,400 trees to restore ecologically fragile regions, which aims to deliver:
- Environmental benefits: Directly improve ecology in the designated areas through vegetation, windbreaks and sand fixation, to contribute to China's ‘dual carbon’ goals and biodiversity conservation roadmap;
- Social benefits: Raise public awareness on environmental protection with measurable carbon-absorbing indicators and engage communities in sustainable livelihood programmes.
The Bank’s Green Bond Framework was independently evaluated by the globally renowned ESG assessor ISS Corporate Solutions who issued a second party opinion certificate to ensure transparency and traceability of capital investments.
“China is a core market for energy transition. By directing Chinese capital to global sustainable development projects through a ‘solidarity-based’ model, the Bank not only contributed to the country's roadmap towards a green future, but also introduces a replicable model to further drive offshore Renminbi product innovation.”
Wendy Zhu
Head of Global Markets Division for China at Crédit Agricole CIB
"As a pioneer and advocator of green finance in China, Shanghai Pudong Development Bank is actively building a multi-layered green financial system based on green loans and green bonds. This investment in the solidarity-based note is another exemplar of the Bank leveraging its advantages in domestic and overseas markets, turning green development concepts into actions, and strengthening green finance innovation.”
Hongli Xue
Director of Financial Markets, Chief Economist, Executive Dean of the Research Institute, and General Manager of the Head Office Financial Market Department at Shanghai Pudong Development Bank
"Postal Savings Bank of China is committed to lift benchmark and build a green financial service system with unique ‘multi-sector, multi-product and multi-layer’ green finance business characteristics, as the Bank continues to lift benchmarks of our green finance service in response to the country’s ‘Five Priority Segment of Finance’.”
Guofeng Han
General Manager of the Financial Market Department of the Head Office at Postal Savings Bank of China
"Bank of Shanghai’s investment in this solidarity-based note is an important endeavour for the Bank to participate in global green and sustainable finance innovation. Nonetheless, this product uses offshore Renminbi green note as a carrier to deepen the cross-border connection between China and global green capital, demonstrating boundless possibilities for market innovation.”
Jun Wu
Business Director and General Manager of the Financial Market Department at Bank of Shanghai and Chairman of Bank of Shanghai Fund
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