Bank of China issues triple-currency offshore green bond

On October 9, the Bank of China successfully completed the pricing of US $1 billion worth of green bonds in three currencies, including US $350 million, Euro 300 million and RMB 2 billion, in the overseas market, mainly to support green projects that meet requirements.

On October 9, the Bank of China successfully completed the pricing of US $1 billion worth of green bonds in three currencies, including US $350 million, Euro 300 million and RMB 2 billion, in the overseas market, mainly to support green projects that meet requirements.

For the issuance of US dollar bonds, Bank of China for the first time adopts the Secured Overnight Financing Rate. This is also the first time that a bond that have been issued in the Asia-Pacific region by a commercial bank.

The Secured Overnight Financing Rate, or SOFR for short, is an alternative rate for future US dollar LIBOR. SOFR comes from transaction data, which can more truly reflect the actual financing cost of the market than LIBOR.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/07/bank-of-china-issues-triple-currency-offshore-green-bond/.

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