China issues first overseas RMB-denominated sovereign green bond in London

China issued its first-ever overseas RMB-denominated sovereign green bond in London on Wednesday, China's Ministry of Finance said on Thursday.

The deal totals 6 billion yuan (about 833.33 million U.S. dollars), including 3 billion yuan for a three-year term with an interest rate of 1.88 percent, and 3 billion yuan for a five-year term at an interest rate of 1.93 percent. Both rates are lower than the yields on comparable treasury bonds in the Hong Kong Special Administrative Region secondary market.

Notably, the London offering spurred strong demand from international investors -- drawing a diverse range of participants across various regions. Total subscriptions hit 41.58 billion yuan, 6.9 times the issuance value.

"This is a green development. So that means, you know, the international investors have a huge confidence about the sustainable development of China, both in the green development and also digital transformation," said Liao Min, China's vice minister of finance, who attended the bond's launch ceremony held at the London Stock Exchange.

China is the world's biggest producer of green technology. So it makes sense to invest in that space.

The bonds could also offer some stability for markets on edge after U.S. President Donald Trump's tariff announcement.

"We need signals that the financial markets are functioning well. And we need also signals and clear signs that, you know, sustainable finance continues to be well supported by the international financial community," said Bryan Pascoe, chief executive of the International Capital Market Association.

China issues first overseas RMB-denominated sovereign green bond in London

China issues first overseas RMB-denominated sovereign green bond in London

China issues first overseas RMB-denominated sovereign green bond in London

China issues first overseas RMB-denominated sovereign green bond in London

China issues first overseas RMB-denominated sovereign green bond in London

China's central bank on Sunday reported steady growth in key financial indicators for March, reflecting the country's moderately accommodative monetary policy and strong support for the real economy.

China issued 9.78 trillion yuan (1.36 trillion U.S. dollars) in new yuan-denominated loans in the first three months of 2025, central bank data showed on Sunday.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, increased by 7 percent year on year to 326.06 trillion yuan at the end of last month, according to the People's Bank of China.

At the end of March, outstanding yuan loans amounted to 265.41 trillion yuan, up 7.4 percent year on year, and the total social financing stock in China reached 422.96 trillion yuan, marking an 8.4 percent increase from the previous year.

According to Zhang Jiqiang, director of the Huatai Securities Research Institute, the growth in lending was primarily driven by increased demand from businesses, rapid growth in individual housing loans, and positive momentum in consumer loans.

Interest rates remained at historically low levels, according to the data. The weighted average interest rate on new corporate loans was around 3.3 percent in March, down 45 basis points year-on-year, while the rate on new individual housing loans was around 3.1 percent, down 60 basis points.

This data also indicates that lending is increasingly directed towards supporting small and micro enterprises and the manufacturing sector, key drivers of economic growth. Inclusive finance loans to small and micro businesses reached 34.81 trillion yuan, up 12.2 percent year on year. Medium- and long-term loans to the manufacturing sector grew by 9.3 percent year on year to reach 14.8 trillion yuan.

With the credit structure being optimized, Wen Bin, chief economist at China Minsheng Bank is bullish on the continued support for financing growth.

He said the recent announcement by the Ministry of Finance to issue the first batch of 5 trillion yuan in special treasury bonds to bolster the core tier 1 capital of large state-owned banks is expected to leverage an additional 40 trillion yuan in new loans.

China's March financial data shows robust growth, strong backing for real economy