China's Ministry of Finance issued its inaugural sovereign RMB-denominated green bond on 2 April 2025, raising RMB 6 billion — equivalent to approximately USD 824 million — across two tranches listed on the London Stock Exchange. The deal attracted orders equivalent to 6.9 times the amount on offer.
The bond was structured in a three-year tranche and a five-year tranche, priced at yields of 1.88% and 1.93% respectively. According to Xinhua, both yields came in below those of regular Chinese government bonds of similar maturity issued in Hong Kong at around the same time.
THE FRAMEWORK
The transaction was conducted under China's Sovereign Green Bond Framework, which was released in February 2025 following bilateral discussions between Chinese and British officials at the government level. The framework's eligible project categories refer to China's Green Bond Endorsed Projects Catalogue, and the framework is designed to align the issuance with internationally recognised green bond principles.