The dragon takes flight: tailwinds for China’s first green bond issuance
China has launched its first sovereign green bond, the issuance is significant for three reasons – confidence, geography and timing, reports Atharva Deshmukh
It was a moment for the history books. In April this year, the London Stock Exchange hosted officials from China’s Ministry of Finance (MOF). Looking over a banner extending them a warm welcome, MOF officials unveiled a closely watched financial instrument: a yuan-denominated Chinese sovereign green bond, issued overseas. The first of its kind.
The issuance, which raised over $833m, is a significant milestone for China – a country that simultaneously accounts for 40% of the world’s renewable energy capacity expansion (over the past five years) and one in four tons of its coal use.
Its significance has more to it than scale alone.
