The Luxembourg Stock Exchange welcomed a new green bond from Bank of China on Thursday which will be housed on the LGX platform dedicated to sustainable bonds.

This new green bond is made up of two tranches, one of €500m, the second of $500m. As proof of investor appetite for this type of product, the first tranche was 2.8 times oversubscribed, and the second 3.6 times.

The amounts collected from international investors will be used to finance 10 projects. These include a 50-turbine wind project in northern China--with expected savings of 160,000 tonnes of CO2 per year--and a new metro network in the south of the country. Composed of 26 stations, it will be able to transport half a million people and save 77,000 tonnes of CO2.

Present in Luxembourg since 1979, Bank of China was, in 2016, the first Chinese bank to list a green bond on the continental European market. The transaction was carried out via the Luxembourg Stock Exchange. Split into four tranches, the bond had a total value of $2.8bn. 

"We are proud to be the international listing location of Bank of China, a pioneer who paved the way for close relations between the Chinese and Luxembourg financial markets," Julie Becker, CEO of the Luxembourg Stock Exchange, said during of the ceremony.

This article was originally published in French on Paperjam and has been translated and edited for Delano.