GAC Group issues first green tech bonds, securing RMB 2bn

Guangzhou Automobile Group Co., Ltd. (GAC Group) announced the successful issuance of its 2025 First Tranche Green Technology Innovation Bonds on December 15, 2025. The bonds, with an issue size of RMB 2 billion, were fully subscribed, and the proceeds were received on the same day. This issuance is part of a larger plan to issue up to RMB 15 billion in medium-term notes, approved by the board and shareholders in September 2025.

The bonds, identified by short name "25 GAC Group MTN001 (Tech Innovation Bond)," have a three-year term with an interest rate of 1.8%. The settlement date was December 15, 2025, with maturity set for December 15, 2028. China Minsheng Banking Corporation acted as the lead underwriter, with Industrial and Commercial Bank of China and Industrial Bank Co., Ltd. serving as co-lead underwriters.

The issuance follows the China Interbank Market Dealers Association's approval of GAC Group's RMB 15 billion technology innovation bond registration on November 10, 2025, valid for two years. This financing initiative underpins GAC Group's commitment to green technology innovation, aligning with its strategic development goals.