SHANGHAI -- Japan's Mizuho Bank will serve as a principal underwriter for China's first green bond that consists only of income streams from loans for low- and zero-emission cars as Beijing pursues an ambitious climate change goal.

The 910 million yuan ($142 million) offering will be created from loan claims held by a financial company affiliated with state-owned automaker SAIC Motor. Terms of the sale will be decided as soon as Tuesday.

Mizuho joins a co-lead manager team that also includes Guotai Junan Securities, Bank of China, and Industrial and Commercial Bank of China. The unit of Japan's Mizuho Financial Group is trying to position itself to catch more of such underwriting deals in what is seen as a growing market.

Market watchers report a certain level of demand for China's first green asset-backed security. Given the small size of the offering, some expect the bond may be priced about 20 basis points below the comparable interbank rate.

The environmental impact of the electric vehicles and other cars covered in the new bond have been certified.

President Xi Jinping has committed China to become carbon neutral by 2060, and the world's largest emitter of carbon dioxide is promoting green bonds as a fundraising source to help meet this target. The green bond market has grown rapidly in China, with issuances reaching 200 billion yuan to 300 billion yuan a year.

Sales of low- and zero-emission autos are projected to grow 30% on the year to about 1.8 million vehicles in 2021. The expansion is expected to spur offerings of asset-backed securities certified as green bonds.