Frankfurt a.M. / Germany, November 28, 2017 – On Wednesday, November 15, China Development Bank’s (CDB) first quasi-sovereign international green bond was issued on the China Europe International Exchange (CEINEX) market place in Frankfurt. For CEINEX, this marks the first bond denominated in U.S. Dollar and Euro as well as the first green bond product on their platform, which is operated by Deutsche Börse.
The issuance includes a 5-year bond with a coupon rate of 2.75% subscribed for USD 500 million and a 4-year bond with a coupon rate of 0.375% subscribed for EUR 1 billion. The use of proceeds is to support green industry projects such as clean transportation, renewable energy and water resource protection along the "Belt & Road Initiative" regions. This includes selected eligible investments in railway infrastructure projects in northwest China, a wind power project located in Pakistan as well as a water resource management project in Sri Lanka. All projects support to green development, providing mutual benefit and a win-win situation.
The CDB green bond is in line with the Green Bond Principle (2017) by the International Capital Markets Association (ICMA) and has obtained the Climate Bonds Initiative Certification by the independent Climate Bonds Initiative (CBI). The bond’s issuance was completed on November 9 and aimed at professional investors, mainly professional green investors, central banks and sovereign wealth funds.
With the China Development Bank CEINEX brought the world’s largest development finance institution to issue their initial green bond in Europe, successfully showcasing global demand for China’s green finance products. In accordance with the rules of the German capital market, CEINEX offers international investors a market place to invest and trade high-quality Chinese financial assets in the European time zone and provides a new model for the financing of infrastructure construction along the "Belt & Road Initiative".
Dr. CHEN Han, Co-CEO of CEINEX, said: "We are honored that China Development Bank chose CEINEX as a venue for its first international green bond. CDB's green bond is a milestone for CEINEX’s product lines and reflects how we actively support the international green and sustainable development. CEINEX is dedicated to bridge the Chinese-European capital markets by providing investors with a diversified investment product portfolio from securities and bonds to derivatives. We support the multi-level financial connectivity along the "Belt & Road Initiative" by making Chinese- and RMB-related financial products investable for global investors and welcome progressively high-quality issuers to list their bonds in our market place.”
Mr. WANG Zhong, Director General of Treasury & Financial Markets Dept. of the China Development Bank, said: “The successful issuance of the first international Green Bond was an innovation for China Development Bank (CDB) in international capital markets. It reflects that CDB is actively enhancing comprehensive financial services, implementing the concept of green development, contributing to infrastructure constructions along the "Belt & Road Initiative", and promoting the bond connectivity both in domestic and overseas bond markets. The first CDB and CEINEX cooperative product will deepen the comprehensive Sino-Europe financial cooperation.”
Based in Frankfurt am Main, Germany, CEINEX is a joint venture established by Shanghai Stock Exchange, Deutsche Börse Group and China Financial Futures Exchange. As the first market place for RMB- and China-related investment products in the Chinese offshore market, it acts as a unique bridge between the Chinese and international financial markets. CEINEX is dedicated to provide reliable offshore RMB- and China-related financial instruments to investors, so as to promote RMB internationalization.
About China Development Bank (CDB)
China Development Bank (CDB) was founded in 1994 and is the world’s largest development finance institution, and the largest Chinese bank for foreign investment and financing cooperation, long-term lending and bond issuance.
CDB provides medium- to long-term financing facilities that serve China’s major long-term economic and social development strategies. Professional credit rating agencies including Moody's and Standard & Poor's have rated CDB at the same level as China’s sovereign rate.
CDB currently has 37 primary branches and 3 secondary branches on the Chinese mainland, one offshore branch in Hong Kong and six representative offices in Cairo, Moscow, Rio de Janeiro, Caracas, London and Vientiane.
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China Europe International Exchange AG (CEINEX)
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