The China Development Bank (CDB) announced on Wednesday that it has successfully completed the book-building process for a 5 billion yuan ($700 million) three-year green bond, with a coupon rate of 1.27%. The issuance, conducted on Tuesday through the China Foreign Exchange Trade System and settled at the Shanghai Clearing House, marks the bank's first foray into using an online book-building method for green bond placement, a move that enhances both efficiency and transparency in the issuance process.

The bonds are tied to projects that have been carefully selected according to the Green Finance Support Project Catalogue (2025 Edition), with the highest green rating of G1. Proceeds from the sale will be channeled primarily toward infrastructure upgrades, energy conservation and carbon reduction initiatives, the low-carbon transition of the energy sector, and ecological restoration and preservation efforts.

This issuance represents a fresh attempt by the CDB to refine its bond pricing mechanism and narrow the spread between primary and secondary markets. It also serves as a new exploration in leveraging market-based approaches to bolster green and low-carbon financing.