Mizuho Bank from Japan will lead the first green bond of China that will only contain the streams of income from loans for low-emission and zero-emission cars as Beijing is on its path to ambitiously reaching a climate change goal.
The $142 million offering will be established with loan claims held by a financial company related to state-owned automaker SAIC Motor. The terms of this sale are still to be decided as soon as Tuesday.
Mizuho Bank will join the co-led managerial team along with Guotai Junan Securities, the Industrial and Commercial Bank of China and Bank of China. Japan’s Mizuho Financial Group is making attempt to collect more underwriting deals like this one, in what is seen as a market increase.
Market experts claim a certain level of demand in the first green asset-backed security of China. Due to small size of this offering, some of the experts believe that the bond might fall 20 basis points short from the interbank rate.
Source: Nikkei Asia