China Markets First Yuan Green Bond Sale in Canada
China is marketing its first yuan-denominated green sovereign bond in Canada, selling up to 4 billion yuan in three- and five-year notes. The sale comes amid warming bilateral ties, with Vice-Premier He Lifeng visiting Canada and Prime Minister Carney set to meet President Xi Jinping.
China is marketing the first yuan-denominated green sovereign bond issuance in Canada, broadening its offshore debt reach beyond Hong Kong, Macau and London, according to a Bloomberg report citing people familiar with the matter.
The Ministry of Finance began selling up to 4 billion yuan (HK$4.7 billion) green bonds on Monday, with initial price guidance for the three- and five-year notes set at yields of around 1.8 per cent and 1.9 per cent, the report said.
The sales came amid warming ties between China and Canada. Last week, the two countries agreed to extend a tariff deal and continue talks on boosting Canadian exports to China. Chinese Vice-Premier He Lifeng is visiting Canada this week to co-chair the second China-Canada Economic and Financial Strategic Dialogue, while Canadian Prime Minister Mark Carney is set to meet President Xi Jinping in China later this month.
The issuance also marked part of China's commitment to a sustainable transition. In May, the country sold three- and five-year yuan green bonds in Hong Kong, priced at 1.42 per cent and 1.56 per cent, respectively, following a 6 billion yuan green sovereign bond sale in London in 2025.