The London Stock Exchange welcomes the Ministry of Finance of the People’s Republic of China (“MOF”) as it successfully launched its RMB 6 billion green bonds of 3-year and 5-year maturity, to be admitted to trading on the London Stock Exchange’s International Securities Market. This milestone marks a significant step in the RMB internationalisation and demonstrates the People’s Republic of China’s (“China”) commitment to support green and sustainable development.

Since 2013, China has recognized the critical role of Ecological Civilization in national governance, integrating it into its Five-Sphere Integrated Plan, which comprehensively covers economic, political, cultural, social, and ecological civilization construction, aiming to promote the all-round development of the country. China has proposed a new development philosophy of “innovative, coordinated, green, open and shared development”. In September 2020, China announced its commitment to scale up its Nationally Determined Contributions by adopting more robust policies and measures. China aims to achieve carbon peaking by 2030 and carbon neutrality by 2060.

These green bonds are issued under the People’s Republic of China Sovereign Green Bond Framework (“Framework”), which was released in February 2025. The Framework serves as the foundation for the issuance of international sovereign green bonds of MOF. Through this Framework, China aims to diversify the global green bonds market, encouraging more domestic issuers to participate, and attracting further investment in the green financial markets.

This marks the first time that China has built a sovereign green bond framework, which has been assessed by both Chinese and international Second Party Opinion providers. The Framework is developed and structured in accordance with the China Green Bond Principles (2022 Edition) 2 issued by the Green Bond Standard Committee, and the Green Bond Principles (2021 Edition) (with June 2022 Appendix 1) issued by the International Capital Markets Association (“ICMA”).

For this RMB sovereign green bond issuance, the Joint Lead Managers and Joint Bookrunners are Bank of China, Bank of Communications, Barclays, China International Capital Corporation, Crédit Agricole CIB, HSBC, ICBC, and Standard Chartered Bank. Crédit Agricole CIB and Bank of China acted as Green Structuring Advisors.

Source: LSEG

Climate Bonds Initiative: China debuts landmark sovereign green bond on global stage

We’re thrilled to share that China’s Ministry of Finance (MoF) has issued its debut sovereign green bond, denominated in Chinese yuan and valued at USD824m, on the London Stock Exchange. This marks a major milestone: China’s first green sovereign bond and also its first-ever sovereign bond issued overseas.

The initiative was first unveiled in January, following high-level meetings in Beijing between Chinese and UK government officials. Just a month later, in February, the MoF published a comprehensive sovereign green bond framework, outlining that proceeds will be directed toward climate mitigation and adaptation, natural resource protection, pollution control, and biodiversity preservation.

This moment has been years in the making. Back in 2014, Climate Bonds Initiative CEO Sean Kidney served on a People’s Bank of China task force that recommended the creation of a domestic green bonds market. Fast forward to today, and China has built one of the largest green finance markets in the world—a key instrument in the country’s path toward carbon neutrality.

“We are thrilled by China’s inaugural green sovereign bond issuance in London—a landmark event that advances the global green finance agenda,” says Wenhong Xie, Head of China Programme at the Climate Bonds Initiative.

“Backed by sovereign credit and aligned with environmental goals, this issuance addresses the growing global demand for sustainable assets while promoting cross-border investment through high transparency and adherence to international standards. It also establishes a pricing benchmark for RMB-denominated green bonds, encouraging local governments, financial institutions, and corporations to further engage in the green bond market.”

“This milestone will help attract international capital into critical sectors and climate resilience projects, expanding the financing options for China’s green transition.”

This issuance comes at a pivotal moment for global markets, as the volume of sustainable debt aligned with Climate Bonds definitions approaches the USD6tn milestone.

Source: Climate Bonds Initiative