USD 640 million Social Notes, USD 1.2 billion Sustainability Notes (including Sustainability Re-Linked Notes) and USD 779 million Transition Notes…reports Asian Lite News
Nasdaq Dubai welcomes the first Green Bond listing worth USD 770 million by Bank of China Limited (BOC) raising the total value of debt listed on the exchange to USD119.39 billion. One of China’s four biggest state-owned commercial banks, BOC, sets a global milestone by issuing the world’s first Belt and Road Initiative-Partner-Themed green notes, simultaneously through its Dubai and Luxembourg branches. The Luxembourg Branch unveiled an offshore RMB product worth RMB 2 billion (USD 270 million), while the Dubai Branch released a USD 500 million secured overnight financing rate (SOFR) floating-rate product, each with a 3-year term.
The significant occasion was marked by Zhang Xiaodong, Executive Vice President of Bank of China Limited, along with Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), ringing the market opening bell at Nasdaq Dubai.
Coinciding with the 10th anniversary of the inception of the “Belt and Road” initiative (BRI), this issuance proudly stands as the world’s first green notes with a BRI-Partner-Theme, marking a significant milestone in sustainable financing. The debut issuance of USD-denominated Green Notes by BOC (Dubai) branch represents the first funding initiative by a Chinese issuer solely focusing on green projects in the Middle East. The proceeds generated by the two notes will be allocated to fund eligible green projects located in BRI-Partner countries. The BRI-Partner countries where the selected eligible green projects are located include United Arab Emirates, Saudi Arabia, Portugal, Austria, Bulgaria, and Poland. Since 2015, BOC has issued five BRI-themed notes, with a total size of nearly USD 15 billion.
BOC has issued approximately a total of USD 18 billion in ESG-linked notes since 2016 through its 12 overseas branches, amplifying its active role as an ESG issuer in offshore markets. These issuances are equivalent to USD 15.3 billion Green Notes (including Blue Notes), USD 640 million Social Notes, USD 1.2 billion Sustainability Notes (including Sustainability Re-Linked Notes) and USD 779 million Transition Notes.
Zhang Xiaodong, Executive Vice President of Bank of China Limited said: “This issuance demonstrates our commitment to green finance and our endeavour to transit to a low-carbon and more inclusive economy. As we mark the 10th year anniversary of the inception of Belt and Road Initiative, we are proud to have participated in more projects in BRI partner countries, with over USD 269 billion of credit extended to over 900 projects as of end of 2022. We truly value our partnership with Nasdaq Dubai in facilitating high quality cooperation between BRI partner countries and contributing to a sustainable future.”
Hamed Ali, CEO of Nasdaq Dubai and DFM said: “We are delighted to welcome this green bond listing by Bank of China. This further strengthens the long-standing relationship we have with Bank of China, built on trust and confidence. Together, with our esteemed partners, we are shaping a future where capital markets play a transformative role in addressing global sustainability challenges. The listing of the world’s first Belt and Road Initiative-Partner-themed green notes represents a significant step in this direction, facilitating investments in green initiatives and underlining Nasdaq Dubai’s commitment to sustainable finance. The new issuances raised the total value of Green Bonds listed on the exchange to USD 19.5 billion, solidifying Nasdaq Dubai’s position as a global leader in creating an ecosystem that fosters sustainable finance.”