ADBC prints second green bond under Bond Connect
US$450 million proceeds will be used for five areas including energy saving, pollution prevention, resource preservation and recycling, environmental protection and climate change
Agricultural Development Bank of China (ADBC) tapped the green bond market under the Bond Connect scheme for the second time in 2018 for a three billion yuan (US$450 million) global offering on June 28. According to ADBC, the proceeds will be used for five areas including energy saving, pollution prevention, resource preservation and recycling, environmental protection and climate change.
The two year issue, to be listed in Shanghai Clearing House on July 3, bears a yield of 3.86%, 28 bps lower than bond with same tenor in China. The bond attracted interest from both onshore and offshore investors, with a 4.75 time oversubscription. Meantime, the bond will also be distributed over the counter through commercial banks and the information of the transaction will be disclosed in Luxembourg Stock Exchange.
The green bond transaction was aligned with both the international standards and the Chinese framework, obtaining a third party opinion from CECEP Consulting.
According to ADBC, the green bond shows its long-term commitment to bolster China’s green bond market and the Bond Connect scheme. In April 2018, ADBC also raised four billion yuan through its two-year green bond under Bond connect. So far, ADBC has issued a total of 20 billion yuan green bonds.
ADBC was also the first issuer to tap the Bond Connect scheme. In 2017, the bank issued its 16 billion yuan onshore policy financial bond under the Bond Connect.
In early 2018, The Luxembourg Stock Exchange signed a green bond partnership with ADBC, under which detailed information will be available on green bonds issued by the bank that are traded on the interbank market and accessible through the Bond Connect scheme.
Bank of Communications and Credit Agricole acted as cross-border advisors in this transaction. Lead underwriters were Orient Securities, Citic Securities, Bank of Nanjing, Shanghai Rural Commercial Bank while underwriters included Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Shanghai Pudong Development Bank, Bank of Hangzhou, Zhongyuan Bank, Shengjing Bank, Bank of Changsha, Bank of Jiangsu, Bank of Luoyang, China Bohai Bank, Bank of Dalian, First Capital, Minsheng Securities and Shenwan Hongyuan Securities.