By Carol Chan
HONG KONG--State-owned Agricultural Bank of China Ltd. (1288.HK) raised a combined US$1 billion from green-bond offerings to fund green projects, according to a term sheet seen Wednesday by The Wall Street Journal.
The nation's third-largest lender by assets sold the green bonds in three tranches, including US$400 million three-year U.S. dollar-denominated bonds, US$500 million five-year U.S. dollar-denominated bonds and CNY600 million (US$95 million) two-year offshore yuan bonds, the term sheet said.
The three-year and five-year U.S. dollar-denominated bonds carry a coupon of 2.125% and 2.750%, respectively, and the two-year offshore yuan bonds carry a coupon of 4.150%, according to the term sheet.
Green bonds, which go toward funding environmentally friendly projects, are a fast-growing corner of the fixed-income market.
The Beijing-based lender's green bonds are expected to be rated A1 by Moody's Investors Service and A by Fitch Ratings.
ABC International, Bank of America Merrill Lynch, Barclays, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered Bank and Wells Fargo Securities were joint bookrunners for the bond sale, the term sheet said.
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