Bank of China, serving as the lead underwriter, green structuring advisor and lead clearing bank, assisted China's Ministry of Finance on May 28 in its first issuance of RMB-denominated green sovereign bonds in Hong Kong, totaling RMB 6 billion.

The offering comprises two tranches with maturities of three and five years, carrying coupon rates of 1.42% and 1.56%, respectively.

All funds raised will be used in accordance with the People's Republic of China Sovereign Green Bond Framework to support eligible green expenditures in the central government budget.

The offering drew strong demand from global investors, including high-quality orders from major markets across Asia, Europe and elsewhere, with subscriptions reaching 10.4 times the issuance size. The investor base was diverse, with sovereign and supranational investors accounting for 31%, banks 47%, and funds, asset managers and insurers 20%. Green and sustainable investors accounted for 35%. Geographically, investors from the Asia-Pacific region accounted for about 80%, while those from outside the region accounted for about 20%.

BOC has long been a major service provider for the Ministry of Finance's overseas sovereign bond issuances in multiple currencies. Leveraging its strengths in debt capital markets, green financial services and cross-border RMB business, it provides full support for such issuances.

For offshore RMB sovereign bonds, BOC has served as a global coordinator for eight consecutive issuances since the Ministry of Finance first issued offshore RMB-denominated sovereign bonds in London in 2016, totaling RMB 36 billion.

For offshore green sovereign bonds, BOC has assisted the Ministry of Finance with offshore sovereign green bond issuances for two consecutive years, following the release of the People's Republic of China Sovereign Green Bond Framework in 2025. It helped advance a regular issuance mechanism for such bonds.

BOC will continue to leverage its expertise to support green and sustainable development, diversify the range of offshore sovereign bonds, increase their supply, and promote the international use of RMB.