Bank of China’s $500 Million 3-Year Green Notes Offering

Linklaters advised Bank of China on the world’s first ever debt instrument under the updated Common Ground Taxonomy between China and the EU. Allen & Overy has advised the managers on the offering.

Bank of China, Frankfurt Branch announced the offering of its US$500m 3-year green notes.

This transaction marks the world’s first ever debt instrument issued in accordance with the updated Common Ground Taxonomy – Climate Change Mitigation (CGT). The updated CGT was published by the International Platform on Sustainable Finance (IPSF) Taxonomy Working Group, a joint initiative between China and the EU, in June 2022.

With publicly solicited market feedback incorporated, the updated CGT now includes 72 climate mitigation activities that are recognised by both the EU Sustainable Finance Taxonomy and China’s Green Bond Endorsed Project Catalogue. The proceeds of the notes will be used to finance projects in areas such as wind power, energy storage and energy-saving transformer manufacturing in countries including China, Germany and the Netherlands, in accordance with the CGT.

Bank of China (Europe) S.A., Bank of China (Hong Kong) Limited, BOCI Asia Limited, ABCI Capital Limited, Agricultural Bank of China Limited Hong Kong Branch, Banco Santander, S.A., Bank of Communications Co., Ltd. Hong Kong Branch, BNP Paribas, CCB International Capital Limited, China Construction Bank (Asia) Corporation Limited, China Securities (International) Corporate Finance Company Limited, Citigroup Global Markets Limited, CLSA Limited, CMB Wing Lung Bank Limited, CNCB (Hong Kong) Capital Limited, Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG, Hong Kong Branch, The Hongkong and Shanghai Banking Corporation Limited, Industrial and Commercial Bank of China (Asia) Limited, Industrial Bank Co., Ltd. Hong Kong Branch, Mizuho Securities Asia Limited, Natixis, SinoPac Securities (Asia) Limited, SMBC Nikko Securities (Hong Kong) Limited and Standard Chartered Bank AG acted as Managers. 

Bank of China (SHA:601988)  is a Chinese majority state-owned commercial bank headquartered in Beijing and the fourth largest bank in the world.

The Linklaters team was led by capital markets partner Michael Ng (Picture), with support from managing associate Allen Zhang.

The A&O team comprised partners Jaclyn Yeap and Agnes Tsang, with support from Alan Zhang, Zhefei Zhang, Rachel Cheung and Christy Ng.

 

Involved fees earner: Agnes Tsang – Allen & Overy; Jaclyn Yeap – Allen & Overy; Zhefei Zhang – Allen & Overy; Alan Zhang – Allen & Overy; Michael Ng – Linklaters; Allen Zhang – Linklaters;

Law Firms: Allen & Overy; Linklaters;

Clients: ABCI Capital Limited; Agricultural Bank of China Limited Hong Kong Branch; Banco Santander Sa; Bank of China (Europe) S.A.; Bank of China (Hong Kong) Limited; Bank of China, Frankfurt Branch; Bank of Communications Hong Kong Branch; BNP Paribas; BOCI Asia Limited; CCB International; China Construction Bank Corp.; China Securities (International) Finance; Citigroup Global Markets Ltd; CLSA Limited; CNCB (Hong Kong) Capital Limited; Crédit Agricole Corporate and Investment Bank; Deutsche Bank AG Hong Kong Branch; Industrial and Commercial Bank of China; Industrial Bank Co. Ltd.; Mizuho Securities Asia Limited; Natixis; SinoPac Securities; SMBC Nikko Securities (Hong Kong) Limited; Standard Chartered Bank; The Hongkong and Shanghai Banking Corporation Limited; Wing Lung Bank;

Sonia Carcano

Author: Sonia Carcano