Bank of China issues its first dual-currency climate transition bonds
15 January 2021
The dual-tranche offering comprises USD500 million 0.875% bonds due 2024 and CNY1.8 billion 2.8% bonds due 2023. Both tranches are issued under Bank of China Limited’s USD40 billion MTN programme and in accordance with the Climate Transition Finance Handbook (2020) published by the International Capital Market Association.
The transition bond offering is aligned with China’s goal to achieve carbon neutrality by 2060. The proceeds will be used to finance and/or refinance eligible transition projects which are in line with strategic pathways of carbon neutrality goals and strategies of the countries and regions the projects are located in.
The A&O team was co-led by partners Jaclyn Yeap and Agnes Tsang, with support from Alan Zhang, Gordon Ng, Rachel Cheung and Susan Zhang.
We are proud to have supported Bank of China in its leadership in shaping the sustainable finance landscape across Asia Pacific. Our involvement in this transaction follows our advice on Bank of China’s first blue bond issuance last September, Bank of China Macau Branch’s small and medium enterprises themed (COVID-19 Impact Alleviation) social bonds issuance last March, and Bank of China Macau Branch’s issuance of the first SOFR-based bonds in Asia and first green bonds in Macau in October 2019.
The information contained herein is restricted and is not for publication, distribution or release in or into the United States of America, Australia, Canada, Japan or South Africa.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 securities 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