Bank of China’s name is everywhere in the green bond market – whether as an arranger, investor, or issuer – thanks to its strength in investment banking and asset management under the leadership of banking veteran Hu Kun.
In 2020, the bank underwrote Rmb14.6 billion ($2.3 billion) of green bonds in the domestic market (excluding policy financial bonds) from 12 issuers, and an equivalent of Rmb37 billion in overseas markets, ranking first among Chinese banks in both areas. While the bank led bookbuilding for its own financial bond issuance overseas, in the domestic market its clients were quite diverse, spanning sectors such as public transportation, renewable energy and financial leasing.
Its green bond investments are also impressive. Bank of China says its portfolio of green bonds was close to Rmb10 billion at the end of 2020. In addition, Bank of China’s wealth management products made over Rmb10 billion of investments in green bonds last year.
Then there is Bank of China’s status as an active issuer of green bonds in the international debt market.
In 2020, the bank issued the first non-sovereign blue bond globally, worth about $942 million: the proceeds from this bond will be used to support ocean-protection projects and offshore wind power farms.