China’s Ministry of Finance (MOF), on behalf of the Chinese central government, issued 6 billion yuan ($834.26 million) in green sovereign bonds in London, on April 2 local time. The offering comprised 3 billion yuan in 3-year bonds with an interest rate of 1.88 percent and 3 billion yuan in 5-year bonds with an interest rate of 1.93 percent, both lower than those of Chinese government bonds in Hong Kong's secondary market.

This issuance attracted robust international interest, drawing in a wide range of investors from diverse sectors and regions. Subscriptions totaled 41.58 billion yuan, representing 6.9 times the issuance amount. Investors from the Asia-Pacific region accounted for 83.5 percent, while the remaining 16.5 percent came from outside the region. Sovereign and supranational entities accounted for 30 percent, banks 48 percent and insurance and asset management investors 20 percent. Green and sustainable investors constituted 22 percent of the total. The bond is held by the Hong Kong Monetary Authority’s Central Moneymarkets Unit and will be listed on both the Hong Kong Stock Exchange and the London Stock Exchange.

On the morning of April 3 London time, the MOF held an issuance ceremony at the London Stock Exchange. Vice Minister of Finance Liao Min, Chinese Ambassador to the UK Zheng Zeguang, UK Economic Secretary to the Treasury Emma Reynolds, Executive Vice President of Bank of China Zhang Xiaodong, CEO of the International Capital Market Association Bryan Pascoe and Group Chairman of Standard Chartered Jose Vinals attended the ceremony and delivered remarks.

Liao highlighted that the issuance of the first RMB-denominated green sovereign bond in London is a significant step in implementing the important consensus reached between the two countries’ leaders and the policy outcomes of the 11th China-UK Economic and Financial Dialogue. This marks the second time in nine years that China’s MOF has issued RMB-denominated sovereign bonds in London, which is of great significance for deepening China-UK exchanges and cooperation in green and financial sectors, bolstering international investor confidence and stabilizing market expectations.