Linklater and Allen & Overy advised on an updated Common Ground Taxonomy debt instrument between China and the European Union, which was launched by the International Platform on Sustainable Finances.
The USD500 million three-year green notes were offered by Bank of China’s Frankfurt branch as part of its USD40 billion medium-term note programme.
Due to different environmental standards between China and the EU, Common Ground Taxonomy puts forward areas of commonality to determine common criteria for each activity.
The updated version includes 72 climate mitigation activities of which wind power, energy storage and energy-saving transformer manufacturing in China, Germany and the Netherlands will be supported by this finance project.
Besides the latest issuance, the programme debuted as a sustainability re-linked bond in November 2021. Allen & Overy also advised on this.
For the updated version, Allen & Overy acted as managers’ counsel with leading partners Jaclyn Yeap and Agnes Tsang.
Linklaters advised issuer Bank of China with a team led by capital markets partner Michael Ng with support from managing associate Allen Zhang.