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Nikkei Markets

China Development Bank Prices 5-Year $500 Million Green Bond - Termsheet

By Amy Lam
Nikkei Markets
HONG KONG (Nov 10) -- Policy lender China Development Bank has set the coupon for its $500 million five-year Green Bond issue at 2.75%, according to a termsheet for the offer.

The final reoffer yield was 78 basis points above the five-year U.S. Treasury yield with a price of 99.777. The bonds will pay semi-annually and mature on Nov. 16, 2022. The issue is expected to get an issue rating of A1 from Moody's, the termsheet showed. China Development Bank is rated A1 by Moody's Investors Service and A+ by S&P Global Ratings.

The offering received orders for more than $1.7 billion from 62 accounts, the termsheet showed. Asian investors purchased 59% of the bonds, while investors in the Europe, Middle East and Africa region bought 41%. Banks purchased 46% and fund managers and insurers an additional 33% of the bonds, with the remaining demand coming from sovereign wealth funds and other investors.

Deutsche Bank and Credit Agricole are the joint green structuring advisors for the issue. The Hong Kong branch of Agricultural Bank of China, Bank of China (Hong Kong), BNP Paribas, China Construction Bank (Asia), Commonwealth Bank of Australia, Credit Agricole, Deutsche Bank and Standard Chartered Bank are the joint bookrunners and lead managers.

China Development Bank will use the net proceeds to finance or refinance Green Projects, including those in the energy, transport and water sectors along the Belt-and-Road route initiative by China. The bonds obtained the Climate Bonds Initiative Certification on Nov. 6.
- By Amy Lam; Amy.Lam@NikkeiNewsrise.com; +852 3960 5155
- Edited by V. Phani Kumar
- Send Feedback to feedback@NikkeiNewsRise.com
- Copyright (c) 2017 Nikkei NewsRise Asia Pte Ltd.

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