DEAL: ICBC's Belt and Road climate bond

Author: IFLR Correspondent | Published: 6 Nov 2017

By Karry Lai, Asia reporter 

The world’s largest bank, Industrial and Commercial Bank of China (ICBC) has sold the biggest single tranche euro-denominated green bond ever listed by a Chinese issuer.

The $2.15 billion Belt and Road climate bond was listed offshore, on October 30, on the Luxembourg Stock Exchange, and comprised three tranches: a €1.1 billion ($1.28 billion) tranche, and two US dollar tranches worth a combined $850 million. The first two had tenors of three years, and the latter five years. The issuer was the Luxembourg branch of the bank.

The deal is ICBC’s first green security using its own green bond framework, which takes inspiration from a number of sources. This makes the bond the first one compliant with Chinese and global green standards.

"The bonds were structured...