China is marketing the first yuan-denominated green sovereign bond issuance in Canada, broadening its offshore debt reach beyond Hong Kong, Macau and London, Bloomberg reported, citing people familiar with the matter.
The Ministry of Finance began to sell up to 4 billion yuan (HK$4.7 billion) green bonds on Monday, with the initial price guidance for the three- and five-year notes at yields of around 1.8 percent and 1.9 percent, the report said.
The sales came amid warming ties between China and Canada. Last week, the two countries agreed to extend a tariff deal and continue talks on boosting Canadian exports to China.
Chinese Vice-Premier He Lifeng is visiting Canada this week to co-chair the second China-Canada Economic and Financial Strategic Dialogue, while Canadian Prime Minister Mark Carney is set to meet President Xi Jinping in China later this month.
The issuance also marked part of China's commitment to a sustainable transition. In May, the country sold three- and five-year yuan green bonds in Hong Kong, priced at 1.42 percent and 1.56 percent, respectively, following a 6 billion yuan green sovereign bond sale in London in 2025.
