Bank of China sells green covered bond

The Chinese lender combined green bonds with covered bonds, potentially opening up a new area of funding for its peers.

Bank of China sells green covered bond

Bank of China, rated A1AA, raised $500 million from a three-year green covered bond issue on Thursday. The deal marked the first ever sale of covered bonds from a Chinese bank although covered bond experts might not recognise it as such.

Covered bonds are typically backed by a pool of retail mortgages. But in this case, the cover pool consists of renminbi-denominated green bonds, almost entirely sold by two issuers in China's...

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