Citi has issued its first ESG structured bond that is redeemable in US dollars or the Chinese renminbi. Proceeds of the bond will be used to support the bank’s global environmental, social and governance (ESG) targets.
From 2014 to 2019 Citi financed and facilitated US$164 billion in low-carbon solutions, and last year committed to completing an additional US$250 billion in environmental transactions by 2025.
The latest deal came after Citi chief executive officer Jane Fraser in March committed the bank to targeting net zero greenhouse gas emissions by 2030 in its own operations.
“We are excited to be a leader in the ESG sector, highlighting our firm-wide commitment to both green and social impact initiatives while providing a diversified source of funding,” says Citi’s head of funding Elissa Steinberg.
Last week Citi launched a natural resources and clean energy transition group within its investment banking unit to facilitate further ESG financing. So far this year, Citi has underwritten US$13.2 billion of ESG-structured bonds in Asia-Pacific, with almost US$1.9 billion for Chinese issuers, overtaking the full-year 2020 volume of US$13 billion.