The Industrial and Commercial Bank of China (ICBC) has become the first Chinese bank to issue green finance bonds on the domestic interbank market since the unveiling of ambitious emissions mitigation targets by Beijing last year.
ICBC recently issued 10 billion yuan (approx. USD$1.55 billion) in green finance bonds on China’s national interbank market, according to a report from the Chinese central bank’s official new outlet.
The bonds have a term of three years and coupon rate of 2.80%, with funds raised to be primarily used for clean energy and green transit projects.
According to ICBC the green bonds satisfy domestic green bond standards, have obtained Equator Principles certification, as well as been incorporated into the Climate Bonds Initiative for labelling certification.
The ICBC issue is reportedly the first domestic issue of green finance bonds by a Chinese commercial bank since Beijing last year outlined the emissions mitigation targets of peak carbon by 2030 and carbon neutrality by 2060.