China’s finance ministry has announced the impending issuance of sovereign green bonds in London, which will mark its first overseas sale of such bonds and a concrete step following high-level economic and finance talks earlier this year.
The yuan-denominated issuance will be worth up to 6 billion yuan (US$829.75 million) with specific details to be disclosed later, the ministry said on Wednesday, in a step seen as reinforcing its commitment to sustainable development while promoting the yuan’s global use.
“European investors also have strong demand for green financial products,” he said. “The issuance also provides a better platform of communication with Europe.”
A statement issued by the Ministry of Finance after the meeting in January said that continued cooperation on sovereign green financing frameworks and China’s inaugural issuance of yuan-denominated sovereign green bonds – a government-issued debt instrument used to raise funds for environmentally sustainable projects – in London were among the key policy outcomes reached by the two sides.
Rui said the issuance in London, a global financial hub, could also expand the yuan’s influence in international markets, while helping to attract more international investors to China’s financial market and bring in advanced green finance expertise.
