“Today’s listing on LGX of the first carbon neutral bond by a Chinese bank in Europe once again underlines Luxembourg’s position as a leading international hub for sustainable finance. It also highlights the crucial role that international capital markets play in financing the transition towards a greener, more sustainable global economy,” said Pierre Gramegna, Luxembourg Minister of Finance.
Financing the race to net zero
The issuance, worth a total amount of USD 600 million, marks the first explicitly defined carbon neutral bond to be issued by a Chinese bank on international capital markets in Europe, as well as the first sustainability bond using a secured overnight financial rate (SOFR) linked floating rate by a Chinese bank in Europe.
The USD 300 million carbon neutral bond which makes up one half of this two-tranche issuance is the first carbon neutrality-themed bond from a Chinese issuer and is linked to China’s stated goal of achieving carbon neutrality by 2060.