King & Wood Mallesons (KWM) has advised HSBC as trustee and security trustee in Bank of China’s inaugural green covered bond offering of US$500 million 1.875 per cent due 2019 to be listed on the London Stock Exchange.

The landmark transaction is the first international issue by a Chinese entity that is secured by domestic green bonds traded on the China interbank bond market, proceeds from which are used to fund eligible green projects in renewable energy, pollution prevention and control, clean transportation, and sustainable water management.

This is the latest in a series of green bonds that KWM has advised on, including National Australia Bank on its first green bond issuance; KfW Bankengruppe on its inaugural A$600 million issue of kangaroo green bonds; Bank of Qingdao’s RMB4 billion green bond issuance which was the first ever issuance of a green bond by a China domestic city commercial bank; and Zhejiang Geely Holding’s debut offering of US$400 million green bonds via its subsidiary, London Taxi Corporation to refinance the production of zero-emission vehicles. 

The KWM team advising HSBC was led by partner Richard Mazzochi and Counsel Ian Hardee, supported by senior associate Garrick Chung.