Industrial Bank Issues World's First Green Bond Aligned with Hong Kong's Sustainable Finance Classification Framework (Phase 2A)

On March 5, Industrial Bank Co., Ltd. successfully issued a green floating-rate bond under its medium-term note program in the international capital market. The bond has a size of $800 million and a maturity of three years. This issuance represents the world's first green bond to comply with the requirements of the "Hong Kong Sustainable Finance Classification Framework" (Phase 2A). The proceeds will be used for financing and refinancing eligible green assets in areas such as renewable energy and low-carbon or low-emission transportation, supporting the Belt and Road Initiative.

The bond issuance received strong demand from global investors, with coverage spanning Asia-Pacific and Europe. Peak order volume exceeded $5 billion, resulting in an oversubscription rate of more than six times. The bond was priced at SOFR plus 41 basis points, a significant tightening of nearly 60 basis points from the initial price guidance, fully demonstrating international market recognition of the issuer’s credit quality and green finance practices.

The bond was issued under the "Industrial Bank Green, Social, and Sustainability Bond Framework" (June 2024 Edition), which aligns with the Green Bond Principles of the International Capital Market Association (ICMA). The framework specifies the use of proceeds, project evaluation and selection process, fund management, and information disclosure for offshore green, social, and sustainability bonds. It has also obtained a second-party opinion report from Moody's Investors Service.

Additionally, this green bond complies with the relevant requirements of the "Hong Kong Sustainable Finance Classification Framework" (Phase 2A). The Hong Kong Quality Assurance Agency (HKQAA) provided a pre-issuance stage certificate to ensure the green attributes of the funded projects.

As a pioneer in green finance, Industrial Bank Co., Ltd. has focused on key areas such as carbon reduction and pollution control in recent years. Through a combination of financing and expertise, the bank promotes the green and low-carbon transformation of economic and social development, achieving a balance of economic, social, and environmental benefits. By the end of 2025, Industrial Bank Co., Ltd.'s green loans exceeded 1.1 trillion yuan.