Bank Of China Plans Multi-Currency Green Bond

logo-cropped-11By entering the green bond market, the Bank of China potentially signals their interest in tackling increased pollution.

Source: Morning Star

Bank of China is planning a multicurrency green bond offering to fund eligible green projects, according to a mandate announcement.

The Chinese lender plans to issue U.S. dollar-denominated and euro-denominated green bonds via its Luxembourg branch, the document said. Bank of China, Bank of America Merrill Lynch, Credit Agricole and HSBC will act as joint global coordinators to handle the sale of these two tranches.

It also plans to issue offshore yuan-denominated green bonds via its New York branch, the document said. Bank of China, Citi and Wells Fargo Securities will act as joint global coordinators to handle the issuance of this tranche.

The planned senior unsecured green bonds, if issued, are expected to be rated A1 by Moody’s Investors Service and A by Fitch Ratings.

Bank of China will be conducting a series of fixed income investor calls on Monday, the document said.
Green bonds, which go toward funding environmentally friendly projects, are a fast-growing corner of the fixed-income market.

In a report dated May 23, Bank of America Merrill Lynch projects US$80-$90 billion of global green bond issuance this year, bringing the total size of outstanding global green bonds to US$175-$185 billion, nearly twice the size seen the previous year.