China’s Ministry of Finance (MOF) issued the country’s inaugural sovereign green bond, raising RMB 6 billion (USD$824 million) to support projects and initiatives aimed at achieving environmental objectives ranging from climate change mitigation and adaptation to natural resource and biodiversity conservation.

The new 3-year and 5-year maturity bonds debuted on the London Stock Exchange, making the offering not only China’s first sovereign green bond, but also the first to listed on an international market.

The decision to list on the LSE follows plans announced by China for the issuance during a visit earlier this year by UK Chancellor Rachel Reeves to Beijing, aimed at developing closer UK-China economic and financial links.

Following the initial announcement, the MOF published its first Sovereign Green Bond Framework in February, outlining its goals for green bond issuances, which the MOF said included “demonstrating the nation’s commitment to supporting green and sustainable development, diversifying the global green bonds market, encouraging more Chinese issuers to issue green bonds, and attracting further investment in the green financial markets.”

The framework outlined eligible categories of expenditure for green bond funds, which include Clean Transportation, Sustainable Water and Wastewater Management, Environmentally Sustainable Management and Restoration of Living Natural Resources and Land Use, Marine Ecosystem Protection and Restoration, Pollution Prevention and Control, and Resource Utilization and Recycling.

The offering was significantly oversubscribed, drawing bids from investors of approximately RMB 47 billion.

In a statement following the issuance, the London Stock Exchange said:

“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.”