ICBC Financial Leasing issues the first international green bond aligned with the updated Common Ground Taxonomy 2024
The updated Common Ground Taxonomy aims to enhance interoperability of taxonomies across jurisdictions, a major step towards a universal taxonomy framework
On 26 June 2025, ICBC Financial Leasing priced a US$400 million 3-year floating-rate green bond offering via its new issuing entity ICIL Aero Treasury Limited. ICBC Financial Leasing is a wholly owned financial leasing arm of the Industrial and Commercial Bank of China. Its business is organised mainly around three sectors, including aircraft leasing, domestic integrated leasing, and maritime leasing.
This is a landmark offering that sets a new benchmark in international green bond issuance. The transaction is the first-ever international green bond issuance that is aligned with the updated Common Ground Taxonomy 2024. Proceeds from the green bond issuance is allocated to eligible green assets under renewable energy and clean transportation categories.
Crédit Agricole CIB acted as the Sole Green Structuring Advisor, Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager on this transaction.
Sets industry benchmark towards convergence
Jointly drafted by the People’s Bank of China and the Financial Services and Capital Markets Union and released by the International Platform on Sustainable Finance in November 2024, and regarded as the most diverse taxonomy to date, the updated Common Ground Taxonomy effectively bridges substantial gaps between jurisdictions identified in previous taxonomies, providing new references for green finance borrowers and cross-border investors.
This is a significant step towards a clear, consistent, and transparent framework that will help broaden the financing channels for deep green projects and the enhance credibility of market participants.
Favourable market conditions
The client has strategically seized opportunities for this issuance amid benign market conditions underpinned by growing appetites from avid yield-seeking investors and a market upturn arising from the easing of geopolitical conflicts.
This orderbook was oversubscribed by over 4.75 times at its peak.
“The meticulous transaction structuring and execution timing have resulted in this landmark transaction, which has set a new benchmark for green bond financing in the market. Thank you to ICBC Financial Leasing for entrusting us and the investor community with their strong support on this transaction.”
Alan Roch
Head of Credit for Asia-Pacific and the Middle East
“Thanks for the trust from ICBC Financial Leasing. We are glad to participate in this innovative transaction, making ICBC Financial Leasing the first Chinese financial institution to issue a green bond aligned with the new Common Ground Taxonomy guidelines, setting a new benchmark for other international issuers to follow.”
June Li
Head of Financial Institutions Group for China
“We are honoured to be ICBC Financial Leasing’s Sole Green Structuring Advisor for their Sustainable Finance Framework update and for this landmark transaction aligned with the Common Ground Taxonomy 2024. This milestone underscores the pivotal role of the financial leasing sector in enabling and facilitating decarbonisation in a range of real economy sectors.”
Carmen Tsang
Head of Sustainable Investment Banking for Greater China
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