Luxembourg Stock Exchange and China ADBC give joint push to green bonds

Jonathan Boyd
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Luxembourg Stock Exchange and China ADBC give joint push to green bonds

The green bonds market has been given a push by a memorandum of understanding (MoU) signed between the Luxembourg Stock Exchange and the Agricultural Development Bank of China to facilitate access to ADBC’s green, poverty alleviation and sustainability bonds on the exchange platform.

The ADBC is the second largest policy bank in China, and the MoU means international investors will be able to access detailed information in English about its bonds that are currently traded on the Chinese Interbank Market (CIBM), and which are accessible through the so-called Bond Connect scheme.

The ADBC bonds eligible will be displayed on the Luxembourg Green Exhange, which is a platform dedicated to green, social and sustainable instruments. The MoU is intended to facilitate a bridge between the CIBM and investors outside China.

Yin Jiuyong, CCP Committee member and vice president of ADBC, noted that: “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 between China and international investors.”

The ADBC is one of three policy banks in China. It is the second biggest interbank market issue and one of the biggest issuers of domestic green bonds in the country. It is responsible or food security and about half its lending goes to the purchase of grains and cereal reserves. It is responsible for policy intended to grow farmer incomes, by financing rural infrastructure. It employs some 50,000 staff, and is rated A+/A1.

The Luxembourg Stock Exchange lists some 36,000 securities, including 26,000 bonds from 2,400 issuers across more than 100 jurisdictions.