Deal highlights: Blue bond issuance

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blue-bond,-finance-marine-projects,-environmental

The Bank of China (BOC) raised US$942 million from Asia’s first blue bond offering on 14 September. Blue bonds are a type of green bond issued to finance marine projects that have positive environmental, economic and climate benefits.

The offshore offering comprised US$500 million three-year blue bonds issued by BOC’s Paris branch and RMB3 billion (US$450 million) two-year blue bonds issued by BOC’s Macau branch. The US dollar-denominated bonds are listed on Euronext Access, and the renminbi-denominated bonds are listed on the Hong Kong Stock Exchange.

Linklaters acted as the legal adviser to BOC. Allen & Overy served as legal counsel to the book runners.

The blue bond offering is in line with the Green Bond Principles (2018), published by the International Capital Market Association. The proceeds will be used to fund eligible marine-related green projects, such as wind power projects.