China's Ministry of Finance issued yuan-denominated sovereign green bonds totaling 4 billion yuan (about 599.28 million U.S. dollars) in Canada on Monday, marking China's first-ever sovereign green bond issuance in the North American country.
The issuance includes 2 billion yuan with a three-year maturity carrying a coupon rate of 1.4 percent and 2 billion yuan with a five-year maturity at 1.5 percent. It attracted a diverse group of institutional investors, including central banks, sovereign wealth funds, commercial banks, asset managers, insurance companies and primary dealers. Investors from the Asia-Pacific region accounted for 77 percent of the total allocation, while non-Asia-Pacific investors made up 23 percent.
"I would say this transaction is more than just about capital. It provides an extremely strong bridge between the countries of China and Canada. From a green bond framework point of view, this allows international capital pools, especially from Canada, to be able to contribute to very important green initiatives in China itself," said Chris Marschall, head of the Financial Institutions Group for Crédit Agricole CIB Canada.
The bonds met with strong demand from global investors, receiving total bids of 54.04 billion yuan, 13.5 times the amount on offer.
"Sovereign bonds are a direct reflection of a nation's credit. In the current complex international environment, the willingness of international capital to participate with real money is a vote of confidence in China's sovereign credit, its economic resilience, and long-term fundamentals. It also demonstrates international market recognition of China's green transition prospects," said Liu Wei, deputy general manager of the Investment Banking Center of the Corporate Finance and Investment Banking Department at the Head Office of the Bank of China.
As part of China's broader strategy to open up its financial sector, the Ministry of Finance has maintained a regularized offshore sovereign bond issuance program for 18 consecutive years, encompassing yuan-, dollar-, and euro-denominated instruments. Between 2009 and October 2026, the ministry has issued a cumulative total of 551 billion yuan in RMB sovereign debt offshore.
China issues 4 bln yuan in first sovereign green bonds in Canada
