On March 30, China Development Bank (CDB) successfully issued 12 billion yuan of “Bond Connect” green financial bonds exclusive for “clean energy equipment manufacturing” to global investors in the national inter-bank bond market. Up to now. CDB has issued a total of 132 billion yuan of green financial bonds, with a balance of 117 billion yuan, ranking first in the market.
The duration of the special bonds is 3 years, with a coupon rate of 2.5%, and the bonds have been subscribed by various enthusiastic investors at home and abroad with a subscription ratio of 3.93 times. The bonds will also be offered to the public by over-the-counter administering institutions. Funds raised through the bonds will be mainly used to support green industry projects, such as new energy and clean energy equipment manufacturing, and construction and operation of renewable energy facilities. This will support the clean energy equipment manufacturing to make breakthroughs in new materials, technologies, and equipment, promote the conventional energy realize “the coupling of three transformations”, namely energy-conserving and consumption-reducing transformation, heating transformation and flexibility transformation, and explore new models of energy production, as so to help realize the carbon peaking and carbon neutrality goals.
It is learned that the bond issuance and fundraising program features a strict selection standard, high quality, and significant environmental and social benefits. It meets the criteria both at home and abroad, such as the Green Bond Endorsed Projects Catalogue, the Green Bond Principles, and Climate Bonds Standard. In addition, it has also passed the independent third-party assessment and certification and obtained the certification label of the Climate Bonds Initiative (CBI), with a green rating of G1. After the completion of relevant projects, it is estimated to reduce carbon dioxide reduction by 3.4788 million tons and save 1.313 million tons of coal equivalent.
The lead underwriters include Zhongyuan Bank, Industrial Bank Co., Ltd., Bank of Hangzhou, China International Capital Corporation, and Bank of Tianjin; and the co-lead underwriters include Bank of Ningbo, Bank of Nanjing, Huishang Bank, CITIC Securities, Orient Securities, Hengfeng Bank, Shengjing Bank, China Guangfa Bank, Shanghai Pudong Development Bank, Shunde Rural Commercial Bank, Bank of Jiangsu, Agricultural Bank of China, Industrial and Commercial Bank of China, Bank of China, Bank of Beijing, and CDB Securities.
According to an official from the Treasury and Financial Market Department of CDB, the bank will fully implement the development philosophy in an accurate and comprehensive manner, giving full play to the functions of development finance, continuously enriching the system of green financial products, increasing support to green industry, and making positive contributions to promoting green and low-carbon development.
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