China Development Bank joins LGX with landmark domestic green bond

30/07/2020

China Development Bank joins LGX with landmark domestic green bond

China Development Bank (CDB), the world’s largest development bank has today been welcomed to the Luxembourg Green Exchange (LGX) with the display of its first domestic green bond. The RMB 10 billion bond is the first of its kind to be simultaneously displayed on the China Interbank Market through Shanghai Clearing House, the Shanghai Stock Exchange and LGX.

“It is with great pleasure that we welcome CDB to LGX today, marking an important step in our growing relationship with China’s capital market. Something that we have proudly fostered over the last 10 years. Bringing this issuance to the international sphere is an important step forward in uniting Chinese domestic and international capital markets, while pushing forward the global sustainable finance agenda,” commented Julie Becker, Deputy CEO of LuxSE and Founder of LGX.

International cooperation for a greener future

Through increased global cooperation, the once closed-off Chinese domestic market is entering the international stage with this milestone issuance bearing a Climate Bonds Initiative certified stamp, as well as adherence to PBoC standards.

The relationship between LuxSE and CDB dates back to 1999, when the development bank listed its global USD 500 million bond on the exchange’s Bourse de Luxembourg (BdL) market.

Since then, LuxSE’s relationship with the development bank and the wider Chinese capital markets system has gone from strength to strength.

In 2018, the Luxembourg Stock Exchange established a Green Bond Channel together with the Shanghai Stock Exchange, where this domestic green bond is also listed and open to trading. This initiative was broadened further in 2019, when LuxSE joined forces with Shanghai Clearing House and China Construction Bank to facilitate access to financial information on Chinese securities, while simplifying the execution process.

The LuxSE Group is composed of the Luxembourg Stock Exchange (LuxSE) the leading listing venue for international securities and Fundsquare, its wholly-owned subsidiary specialized in delivering to the fund industry an efficient and standardized infrastructure for the exchange of information.