China and the UK are bonding again, reports FTAdviser sister title FastFT.
A branch of the World Bank today issued the first ever renminbi-denominated “green bond” in London, in (another) step forward for the internationalisation of China’s currency.
The bond was issued by the International Finance Corporation, a member of the World Bank Group, reports the FT’s Thomas Hale.
Green bonds, as they are known, are designed to raise funds for environmentally-friendly purposes.
The three-year bond, listed on the London Stock Exchange, raised RMB 500m (£47m) and was priced at a yield of 2 per cent. HSBC was sole lead manager on the deal.
The issuance will be seen as a positive for London’s status as a global financial centre, as the global market for RMB-denominated bonds continues to grow.
“This landmark transaction is another step in the internationalisation of the RMB and will add another important asset class to the currency,” said Spencer Lake, Global Head of Capital Financing at HSBC.