OREANDA-NEWS. January 08, 2016. The listing ceremony of the green bond of Agricultural Bank of China Limited (ABC) was successfully held at London Stock Exchange. Mr. Liu Shiyu, Chairman of ABC, and Mr. Xavier Rolet, CEO of London Stock Exchange Group, attended the listing ceremony and delivered speeches.

The two parties also signed the Memorandum of Understanding on Green Financial Cooperation. Mr. Li Zhenjiang, Vice President of ABC, Ms. Harriett Baldwin, Economic Secretary to the Treasury of UK, Mr. Jin Xu, Minister Counselor of Chinese Embassy in UK and principals of main project cooperators including China Guodian Corporation, China General Nuclear Power Group, Beijing Environmental Sanitation Engineering Group and BYD attended the ceremony. Other guests from the Representative Office in Europe of the People's Bank of China, UK Trade & Investment, City of London and the project underwriting team were also present at the listing ceremony.

The USD1 billion equivalent green bond that ABC listed at London Stock Exchange is the first green bond ever issued by Chinese financial institutions and also the first RMB green bond issued by Asian issuers. Mr. Liu Shiyu said: "Successful issuance of the green bond by ABC and its listing at London Stock Exchange are the embodiment of implementing the policy achievements of China-UK Economic and Financial Dialogue. They are also the realistic action taken by Chinese and UK financial institutions for cooperation in supporting green industry and responding to climate change."

Mr. Xavier Rolet commented: "The ties between London and China are becoming increasingly tighter and closer. London Stock Exchange Group is willing to closely cooperate with ABC to jointly build London into one of the international markets where Chinese green finance is most active."

Green bond is an international innovative way of green financing and its funds raised must be used in green projects relating to environmental protection. The green bond of ABC is dual-currency bond, including three-year USD400 million (issue rate 2.125%) and five-year USD500 million (issue rate 2.773%), whose subscription rate totaled up to 4.2, as well as two-year RMB600 million (issue rate 4.15%), whose subscription rate reached up to 8.2. The green bond this time attracted nearly 140 investors from Asia and Europe to over-subscribe and investors from Middle East and Europe accounted for over 10%.

Regarding investor structure, 75% were banking investors and 25% were funds, private banks and other investors. The funds raised will be invested in green projects reviewed and approved by qualified third-party authentication institutions according to internationally accepted Green Bond Principles (GBP). They will cover such fields as clean energy, biomass power generation and urban waste and sewage disposal.

The Memorandum of Understanding on Green Financial Cooperation signed by ABC and London Stock Exchange Group will further enhance China-UK green financial cooperation. By taking this opportunity of issuing the first green bond, ABC will make issuance of green bonds in the international market a routine and institutionalized work item, continue to promote the concept of green finance and broaden recognition of financial institutions and customers for green finance, making further efforts to drive global green industrial development.

ABC is a large-sized state-controlled commercial bank that is uniquely positioned as serving agriculture and rural economy. As one of the first executive directors of Green Finance Committee, China Society for Finance and Banking, it is not only the main advocator for green and sustainable development of China, but also an early practicer.

In 2013, ABC signed the Letter of Commitment on Green Credit together with major Chinese financial institutions, formulated green credit standards internally and implemented the green credit requirements throughout the whole process. It also took the lead to launch advisory service for the clean development mechanism, and offered comprehensive carbon finance services. Moreover, it strived to cultivate new growth poles of low-carbon economy in a bid to set up a sign in finance along China’s path towards ecological civilization.