IB recently acted as the global coordinator and principal underwriter for Fujian Zhanglong Group Co., Ltd., successfully issuing a 3-year, $500 million overseas blue bond. This bond is the first overseas blue bond issued by a non-financial state-owned enterprise in China and the first foreign currency bond from Fujian Province to be cleared through the Central Moneymarkets Unit (CMU) in Hong Kong.
Blue bonds, a subset of green bonds, are dedicated to sustainable marine economies, promoting the sustainable use of marine resources and enhancing marine environmental protection. For this overseas blue bond, Fitch Evergreen and Joint Green Development Company assessed Fujian Zhanglong Group’s Green and Blue Financing Framework and provided a Second Party Opinion (SPO). This reflects the high regard international authoritative ESG assessment and certification institutions have for the sustainability of this financing framework.
Affected by the continuous rate hikes by the Federal Reserve, the overseas bond market has been generally weak, increasing the difficulty of issuing bonds abroad. IB fully leveraged the synergy between its domestic and international branches, collaborating with the issuer to develop a comprehensive issuance plan. This included conducting on-site overseas roadshows and accurately timing the issuance window. This strategy successfully attracted a wide range of domestic and international investors. Additionally, substantial cornerstone orders provided support, ultimately assisting the issuer in making a successful return to the overseas capital markets and achieving multiple innovative breakthroughs.
As a pioneer in green finance, IB also leads in supporting the development of the blue economy. In 2020, IB became the first Chinese signatory and member of the UNEP’s “Sustainable Blue Economy Initiative”. While continuing to increase green credit support, IB actively participates in the construction of the blue bond market. It has successively launched China’s first domestic blue bond, the first overseas blue financial bond by a Chinese joint-stock bank, and the first blue bond in Fujian Province, providing substantial financial support for the development of the blue economy.