On 9 November 2017, China Development Bank (CDB) announced its issuance of US$1.66 billion green bonds, marking the debut of CDB’s Silk Road Green Bond in the international green bond market, and a significant milestone and reference for future Chinese green bond issuers.

CDB is a policy bank under the direct leadership of the State Council and also the largest development financial institution in the world. The Silk Road Green Bonds, issued in dollars and euros, include US$500 million of dollar-denominated debt with a coupon rate of 2.75% for five years, and EUR1 billion of euro-denominated debt with a coupon rate of 0.375% for four years. The bonds are scheduled to be listed on the Hong Kong Stock Exchange and the China Europe International Exchange. The joint counsel and the joint bookrunner for this green bond issuance are Crédit Agricole Corporate and Investment Bank and Deutsche Bank AG. The funds raised from these green bonds will be used to finance and/or refinance green industry projects along the Belt & Road under CBD’s green bond framework, including energy, transport and water projects.

KWM acted as PRC counsel for the joint bookrunners. The project was led by partner Zhao Xiaohong.