For the first time a green bond issued through the Bond Connect Scheme with Shanghai Clearing House and traded in the Chinese Interbank Market (CIBM) entered an international exchange. The green bond is registered on the Luxembourg Stock Exchange’s SOL market and displayed on the Luxembourg Green Exchange (LGX).
The aim of the agreement between ADBC and LuxSE is to bridge the Chinese interbank market with international investors and facilitate the acquisition of ADBC domestic green bonds by investors located outside China. All information relating to the instruments, e.g. the planned use of proceeds, external opinions, etc., will be published in English.
The first ever green bond issued by ADBC through the Bond Connect Scheme, worth RMB 3 billion (USD 450 million), was 4.38 times oversubscribed.
Bond Connect is a convenient channel for foreign investors interested in China’s onshore market as it removes some investment hurdles: there is no quota or the need to stipulate an intended investment amount. Overseas investors can also trade directly with eligible onshore dealers through electronic request-for-quote and native interfaces of established electronic bond trading platforms.