On April 16, ICBC successfully issued the world’s first green Belt & Road Inter-bank Regular Cooperation bond (“BRBR” bond) denominated in RMB, USD and EUR with a total equivalent amount of USD 2.2 billion. The bond is of three-year and five-year maturity, and the funds raised will be used in the construction of the Belt and Road green projects.
According to ICBC officials, the bond was issued by ICBC Singapore Branch in line with the international and China Green bond guidelines, and underwritten by 22 institutions in more than 10 countries and regions along the Belt and Road, 80% of which are member institutions of the Belt and Road Inter-bank Regular Cooperation Mechanism. This issuance has been actively subscribed by investors in international bond market. The bond was issued in three tranches, namely offshore RMB1 billion bond with non-banking investors accounting for 33% and relatively high market recognition, biannual USD1.5 billion bond with sound scale and pricing, and EUR500 million bond, the issuance of which by the local financial institutions in Singapore hits a record high since 2019. Besides, this issuance also wins the favor of central banks and sovereign wealth fund investors, which make up 48% of three-year floating rate USD bond investors and 40% three-year fixed rate Euro bond investors.
It is understood that ICBC initiated and took the lead in the establishment of the Belt and Road Inter-bank Regular Cooperation Mechanism during The First Belt and Road Forum in May 2017. The Mechanism has involved more than 80 financial institutions from 45 countries and regions up to now, serving as an important platform for global financial peers to share information, discuss policies, recommend projects, and cooperate with each other in the development of the Belt and Road Initiative.