The arrangement follows the signing of a memorandum between the Luxembourg Stock Exchange (LuxSE) and the ADBC.
“The future of finance needs to be green.” said Robert Scharfe, chief executive of LuxSE. “We are promoting information connectivity between China and Europe. Our agreement with ADBC is fundamental for the creation of a global green bond market.
“This is a historic moment for the Luxembourg Stock Exchange. ADBC’s securities will be the first [Chinese Interbank Bond Market]-traded green bonds displayed on LGX. It is a very strong signal for the international investor community.”
The bonds are open to both institutional and retail investors, a spokesperson from the LuxSE confirmed to International Adviser.
Yin Jiuyong, committee member and vice president of ADBC, said: “This is the first-time information related to ADBC’s domestic green bonds will be displayed on an international stock exchange. It will facilitate connectivity among China and international investors.”
ADBC, one of the country’s three policy banks, is rated A+/A1 and is the second biggest interbank market issuer in China and one of the biggest issuers of domestic green bonds.
The bank is responsible for the food security of China and some 50% of its lending goes to the purchase of grains and cereal reserves. Among the bank’s responsibilities is to ensure farmers’ income growth by financing rural infrastructure.
The ADBC deal comes hot on the heals of Manulife’s own MoU with the Chinese bank.