Multimedia
18
Apr
China is set to issue its first Renminbi-denominated green sovereign bond on the London Stock Exchange. Our reporter Wang Mengjie spoke with an economic expert about what this milestone means for China's currency and green finance leadership.
In a landmark move for sustainable finance, China will issue its first globally available green sovereign bonds in Renminbi.
The Ministry of Finance confirms the bonds will be listed in London with a total value up to 6 billion yuan – that's approximately 827 million US dollars, marking a significant step in China's green finance ambitions.
ZOU JINGXIAN, Associate Professor, National Academy of Development and Strategy Renmin University of China "The issuance is open to international investors, providing clear and standardized investment guidelines. It demonstrates China's openness to international investors. It has also set international standard. By issuing these bonds, China is actively engaging in setting international green finance standards."
This bond issuance delivers on commitments made during January's China-UK Economic and Financial Dialogue in Beijing.
The move comes as global demand for green sovereign bonds continues to grow, with such instruments typically enjoying strong investor appetite and favorable interest rates.
ZOU JINGXIAN, Associate Professor, National Academy of Development and Strategy Renmin University of China "This transformation is crucial for China's economy and meets the public's growing demand for a better quality of life. The funds raised through these bonds will be allocated for carbon reduction and clean energy projects. Second, it can boost international confidence in China's economy. We know that confidence is important for one economy. By issuing the bond, China can attract more international capital."
WANG MENGJIE, Beijing "This issuance fills the gap for RMB-denominated green sovereign bonds. Looking ahead, Zou said China is poised to become a key player in the global green bond market. Wang Mengjie, CGTN."