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Bank of China issues first green bond under the updated version of the Common Ground Taxonomy report between China and the EU

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Yeap Jaclyn
Jaclyn Yeap

Partner

Singapore

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Tsang Agnes
Agnes Tsang

Partner

Hong Kong

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Zhang Alan
Alan Zhang

Senior Associate

Hong Kong

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Image of Zhefei Zhang
Zhefei Zhang

Associate

Singapore

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17 June 2022

Allen & Overy has advised the managers on the first green bond offering, by Bank of China Limited’s Frankfurt Branch, in reference to the Common Ground Taxonomy - Climate Change Mitigation report (updated) (“CGT Updated Version”).

The USD500 million 3.125% notes due 2025 issued under Bank of China’s USD40 billion Medium Term Note Programme also mark the bank’s first dual-certified green bond with contribution to climate change mitigation. The asset pool of the offering is dually certified to meet the EU and China taxonomies with the commitment on climate change mitigation. 

China and the EU initiated a Working Group on taxonomies under the International Platform on Sustainable Finance (“IPSF”) to assess the existing taxonomies for environmentally sustainable activities. The IPSF published the first version of the Common Ground Taxonomy report in November 2021 and released the CGT Updated Version on 3 June 2022. The publication now includes 72 climate mitigation activities that are recognised by both China’s Green Bond Endorsed Project Catalogue and the EU Sustainable Finance Taxonomy. 

The A&O team comprised partners Jaclyn Yeap and Agnes Tsang, with support from Alan Zhang, Zhefei Zhang, Rachel Cheung and Christy Ng.

Bank of China continues to be a leader in sustainable finance across Asia Pacific. We previously advised on their offering of the world’s first sustainability re-linked bond in November 2021.

For further information, please contact Georgia Bennett at gbennett@sefiani.com.au.

Disclaimer:

The information contained herein is restricted and is not for publication, distribution or release in or into the United States of America, Australia, Canada, Japan or South Africa. This announcement is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or any other jurisdiction. The bonds referred to herein (the "Securities") have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not, subject to certain exceptions, be offered or sold in the United States or to or for the account or benefit of a person located in the United States.

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