CBI member London Stock Exchange Group (LSEG) welcomes the listing of Industrial and Commercial Bank of China London Branch’s (ICBC London Branch) US$1.58 billion equivalent green bond on its International Securities Market (ISM) and green bond segment.
The green bond, part of ICBC’s $10 billion MTN programme, is the largest ever green bond listing on London Stock Exchange and the first Chinese issuance on ISM.
ICBC London Branch’s dual-currency green bond includes a three year floating rate dollar tranche which raised US$500 million, a five year floating rate dollar tranche which raised US$500 million and a three year floating rate euro tranche which raised EUR500 million.
The bond priced at the tightest level ever achieved by ICBC in USD and EUR in a comparable floating rate notes format. ICBC London Branch will use the proceeds to finance eligible green assets under the bank’s Green Bond Framework, including renewable energy, energy efficiency, low-carbon transportation, sustainable water and wastewater management.
The notes have received Climate Bonds Initiative Certification. CICERO and Zhongcai Green Financing Consultants Ltd. have also provided second party opinions on the company’s Green Bond Framework. This issuance cements London’s position as a leading international green and sustainable financing centre, and reinforces the UK’s strengthening economic and financial relationship with China.
Nikhil Rathi, CEO, London Stock Exchange Plc & Director of International Development, LSEG: “We congratulate ICBC London Branch on its successful green bond listing on LSEG’s International Securities Market, the largest ever green bond on London Stock Exchange. The issuance represents ICBC’s commitment to address environmental issues and highlights investors’ increasing interest both in this asset class and in China growth stories. ICBC London Branch is also the inaugural Chinese issuer on our International Securities Market, reinforcing the UK’s strengthening economic and financial relationship with China of which London Stock Exchange is proud to play its part.”
Ruixiang Han, General Manager, ICBC London Branch: "Not only does our Green Bond highlight ICBC's ongoing commitment to sustainable and responsible financing, but launching it in London underscores our commitment to the growing positive relationship between the UK and China. ICBC London Branch sees the success of this issuance as testament to what can be achieved when you combine the strength and reputation of the world's largest financial centre with that of the world's largest bank."
Claire Perry, UK Minister for Energy and Clean Growth: “The launch of the largest ever green bond on London Stock Exchange from the Industrial and Commercial Bank of China continues the momentum of the Green Finance Taskforce report published earlier this year, and provides a ringing endorsement that London is the place to raise green finance for renewable energy, energy efficiency and low-carbon transportation in all sizes of market across the globe.”
Sean Kidney, CEO, Climate Bonds Initiative: “ICBC the world’s biggest bank, is demonstrating global best practice with this latest Certified Green Bond. The record size and London listing is a pointer for large institutional investors to the scale of green finance opportunities emerging both in China & throughout Asia as emerging economies address their climate and sustainable development challenges.”
Kind regards, Fixed Income Team London Stock Exchange
For further information on ISM, please visit our website, or send us an email at bonds@lseg.com or call +44 (0)20 7797 3921
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