ADBC prices inaugural euro green bond

Recent bond issuances indicate a willingness of Chinese banks to develop green credit and commitment to attract domestic and international liquidity to support sustainable projects

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On 19th November 2018, the Agricultural Development Bank of China ("ADBC" or "the Bank") priced its inaugural quasi-sovereign euro green bond offering due 2021. The 500 million euro green floating rate note (FRN) pays a coupon of 3mE+48bps, achieving subscription of 1.68 billion euro at 3.4 times covered. European investors accounted for more than 58% of the assigned orders. Plans are afoot for the bond to be listed on the Luxembourg Stock Exchange, the China Europe International Exchange and the Hong Kong Stock Exchange.

This offering follows the dual-currency bonds issuance of ADBC's inaugural US dollar and offshore Chinese renminbi (CNH) bonds on 19th September.

On 20th November, ADBC held a ceremony in Luxembourg to celebrate the issuance of their first euro green bond.

ADBC is now not only one of the three major bond issuers in China, and its issuance size of green financial bonds also ranks top among the domestic green bond issuers, which the Bank claims enhances the integration and collaborative development between capital markets and green focused industry.

The latest green bond saw huge interest from central banks, sovereign funds, banks, brokerages, funds and asset managers, claims ADBC.

Date

22 Nov 2018

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