ICBC lists large climate bond in Luxembourg

ICBC Bank. Image by:Hernan Pinera. License: Creative Commons. Attribution-ShareAlike 2.0 Generic.

November 1 (Renewables Now) - The Industrial and Commercial Bank of China (ICBC) on Monday listed a climate bond in Luxembourg, divided in three tranches of EUR 1.1 billion (USD 1.3bn), USD 450 million and USD 400 million.

This is the first issuance out of ICBC's green bond framework. The deal also marks the first issuance ever aimed at green projects following the Belt and Road Initiative (BRI), the Luxembourg Stock Exchange (LuxSE) said. It will back projects in China and in foreign countries central to the BRI initiative.

After the offering was announced in September, the bonds are now listed on LuxSE's Euro MTF market and displayed on the Luxembourg Green Exchange (LGX). European investors took 70% of the securities, with buyers including sovereign funds, insurance companies and corporate investors.

The funds raised will be used to finance and refinance projects related to renewable energy, low carbon and low emission transportation, energy efficiency, as well as sustainable water and wastewater management.

(EUR 1 = USD 1.163)

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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