In October 2015, the Agricultural Bank of China Limited successfully issued USD400 million bonds at the interest rate of 2.125%, USD500 million bonds at the interest rate of 2.750% and RMB600 million bonds at the interest rate of 4.150%. All funds raised were used for green projects in China.
This is the first time an Asian issuer issued RMB green bonds, which were highly regarded and sought after by the market. The funds raised by green bonds can only be used for environment-friendly engineering projects. As the entire world is coping with the problems of global warming and environmental pollution, green bonds are now extremely popular with investors worldwide. At the same time, the Agricultural Bank of China and the London Stock Exchange Group signed the “Memorandum of Strategic Cooperation in Green Finance” to further strengthen the Sino-British cooperation in green finance. The Agricultural Bank of China will use the issuance of green bonds as an opportunity to normalize and institutionalize the issuance of green bonds in the international market, constantly promote the concept of green finance, increase the recognition of green finance among financial institutions and customers, and make greater efforts to promote the development of the green industry globally.
The Agricultural Bank of China is the first Asian issuer to issue RMB green bonds abroad, which were highly regarded and sought after by the market. By effectively communicating with the issuer at the demonstration stage of this project and taking part in the issuance of the bonds as the legal counsel of the issuer at the implementation stage, JunHe won high praise from the client.