China issues bonds in London, signalling global integration

The demand for green financing continues to grow. James Poon, country manager for Mainland China and Hong Kong SAR at ING, noted that global green bond issuance reached USD 688.8 billion last year, and is expected to rise to USD 700 billion this year. ING also aims to expand its issuance of sustainable development bonds and green loans. 

In April this year, China issued RMB 6 billion in green sovereign bonds in London—its first-ever green sovereign bond issuance. James stated that China has long been a leader in green bond issuance, and this move in London marks a milestone and underscores China’s commitment, reflecting the country’s ambition for deeper global integration and its efforts to support corporate energy transition. 

James said that China’s goals of reaching carbon peak by 2030 and carbon neutrality by 2060 are key drivers of change. China is one of the world’s largest producers of electric vehicles and batteries, and with many companies undergoing energy transitions, investment in related sectors is growing steadily. Hong Kong, as the most developed bond market in the Asia-Pacific region, accounts for approximately 45% of Asia’s green financing. As an international financial hub, the city is expected to continue fueling the momentum in sustainability-linked loans. 

Despite geopolitical risks, corporates are still actively looking for overseas financing opportunities. James noted given the substantial capital expenditures involved in corporate investments toward energy transition, banks—as a source of financing—can play a catalytic role, with funding efforts aligning as closely as possible to support the transition. Last year, the whole industry saw a 13% increase in sustainable loan growth. 

In the first quarter of this year, ING issued EUR 30 billion in sustainable and green loans—a year-on-year increase of 23%. James expressed hopes of maintaining this momentum in the second half and was confident that further growth would be achieved. 

Originally published in Hong Kong Economic Times: Opens in a new tabhttps://invest.hket.com/article/3983684/