BEIJING - China's National Development Bank (NDB), a key policy bank, has successfully released 12 billion yuan ($1.7 billion) in the form of three-year green financial bonds, with an issuance rate of 1.63 percent, which have attracted a wide variety of investors.

The NDB has now reached a cumulative total of 189 billion yuan in terms of issued green financial bonds, reinforcing its commitment to sustainable finance.

Proceeds from the latest bond issuance are earmarked for pivotal projects within the realms of energy conservation, environmental protection, clean energy and greening of infrastructure.

The bank expects that such funded projects will make a substantial contribution to environmental objectives -- aiming to reduce carbon dioxide emissions by approximately 697,200 tons and conserve 308,900 tons of standard coal annually.

The offering garnered robust interest from a diverse array of domestic and international investors, resulting in an impressive 3.08 subscription multiple.

Between January and May of this year, the NDB had issued green loans that surpassed the 200 billion yuan mark, demonstrating a loan growth rate that outstripped the bank's overall lending expansion.

As of the end of June 2024, the cumulative issuance of labeled green bonds in the Chinese domestic market had reached 3.74 trillion yuan, with an outstanding scale of 2.04 trillion yuan, according to data from Wind, a financial data provider.

Labeled green bonds are bonds that earmark proceeds for climate or environmental projects and have been labeled as "green" by the issuer.