China’s Industrial and Commercial Bank of China (ICBC) Singapore branch priced its US$2.2billion-equivalent inaugural Green Belt and Road Inter-bank Regular Cooperation Bond (BRBR Bond), in conjunction with the upcoming Belt and Road Forum for International Cooperation.

The multi-tranche and multi-currency bonds, announced on April 17, is part of the BRI Green Development initiative that aims to support the development of green projects under the Belt and Road Initiative (BRI), enhance financial infrastructure among the Belt Road countries and encourage investors to consider sustainability and climate change benefits of their investments.

The offering includes three currencies including the yuan, the US dollar and the euro. The 3-year US$900m floating rate notes (FRN) were priced at 3mL+72bps while the 5-year US$600 million FRN were priced at 3mL+83. The 3-year 1 billion yuan (US$150 million) fixed rate notes were priced at 3.3%.

The proceeds of the bond will be used to finance and/or refinance eligible green assets along the Belt Road countries and regions to facilitate the Belt and Road Inter-bank Regular Cooperation Mechanism established in May 2017. Eligible green assets include renewable energy, low carbon and low emission transportation, energy efficiency, and sustainable water and wastewater management.

Zhou Aimin, deputy general manager of ICBC Singapore Branch, said, “We would like to express our sincere thanks to the 22 underwriters and all global investors for their overwhelming support on the successful issuance of the world’s first BRBR Green bond. We will continue to leverage BRBR which will play an important role in the success of BRI.”

ICBC, Crédit Agricole CIB, DBS Bank, HSBC, Standard Chartered Bank acted as the joint global coordinators. Joint bookrunners and joint lead managers include ICBC, Crédit Agricole CIB, DBS Bank, HSBC, Standard Chartered Bank, Agricultural Bank of China, Bank of China, Bank of Communications, Cathay United Bank, CCB Singapore, China Minsheng Banking Corp Hong Kong Branch, China Everbright Bank Hong Kong Branch, Citigroup, CTBC Bank, Emirates NBD Capital, First Abu Dhabi Bank, ING, Maybank, Mizuho Securities, OCBC Bank, SMBC Nikko. Crédit Agricole CIB and HSBC acted as green structuring advisors.