People's Republic of China debuts a Renminbi-denominated sovereign green bond in London

China’s Ministry of Finance (China MoF), on behalf of the People’s Republic of China, launched its inaugural 3- and 5-year CNH 6 billion green bond offering in London on 2 April 2025. Proceeds  are expected to contribute to domestic sustainable development projects identified in the Government’s central fiscal budget to support green and low-carbon development.

China has been a frequent Dim Sum bond issuer in Hong Kong SAR and Macau markets, yet this is the first time it adopts a bookbuilding process. The overall execution strategy was proved to be highly successful – book momentum was strong throughout the day with combined total size peaking over 47 billion in mid-morning London time. Keen interests were seen from supranationals, central banks, sovereign wealth funds, asset managers and many more, including notable ESG investors subscribing from their dedicated green bond funds. The robust demand allowed China MoF to price with minimal yield differential versus its onshore curve.

Crédit Agricole CIB is one of the two banks which acted as green structuring advisor, lead manager and bookrunner on the transaction. This is also the Bank’s first Dim Sum bond mandate from China MoF. The bond received independent second-party opinion from Lianhe Green Development Co., Ltd and DNV Business Assurance Limited.

This is the first green bond after China released its green bond framework in February 2025 that paved groundworks for the country to issue more offshore sovereign green bonds. Crédit Agricole CIB was honoured to be one of the parties assisted the preparation of this green bond framework.

As China aims to achieve carbon neutrality by 2060, issuing a precedent green bond could encourage other issuers in the country to consider tapping sustainable finance to facilitate their net-zero transition progress. This transaction incorporates a diverse range of fund allocation to demonstrate how to proceed to support projects, such as climate change mitigation and adaptation, natural resource protection, pollution control, and biodiversity preservation, for other Chinese issuers to follow.

Transitioning towards net-zero often requires infrastructural change. Crédit Agricole CIB is one of the most established sustainable finance banks in the industry and has been sharing experiences with clients to support their sustainability journey along this way.