Chinese Version

Green Bond Focus 9.25-10.8

Time:2017-10-25 From: Author:

New Green Bond Overview


Table 1: Labeling Green Debts


微信图片_20171025103839.jpg


Table 2: Unlabeled green debt


微信图片_20171025103850.jpg


From the wind database

During the period from 9.25 to 10.8, a newly issued green bond in the green bond market was G17 Huayu 1 with a coupon rate of 6.70% and a maturity of 5 years. The funds were used in the construction of green industry projects with a green bond amount of 8 100 million yuan. The amount of green bonds posted a total of 800 million yuan.

Non-labeled green bond market, a total of four new green bonds. 17 Zixing cast 02, the coupon rate of 6.30%, the issuance period of 7 years, funds for urban water supply project expansion project, the amount of green bonds is 300 million yuan; 17 Zhuozhou Runcheng CP002, coupon rate of 5.45%, the issuance deadline For 1 year, the funds used to repay farmland water conservancy projects such as financial institutions borrowing, the amount of green bonds is 250 million yuan; 17 Mian Hongda debt, coupon rate of 7.20%, the issuance period of 7 years, capital for urban and rural water supply reform, Green Bond debt of 600 million yuan; 17 Hunchun debt 01, coupon rate of 8.48%, the issuance period of 7 years, funds for underground integrated pipe gallery project, the amount of green bonds was 230 million yuan. The total amount of non-labeled green bonds amounted to 1.38 billion yuan.


Market trends

(A) Domestic news

1. Ministry of Environmental Protection will guide the delineation of ecological protection red line environmental protection and then promote

On September 27, the MEP held a routine press conference, saying that it will jointly promote the delineation and strict adherence to the red line of ecological protection with the joint efforts of the NDRC and the relevant departments in issuing the "Proposal on the Spatial Distribution and Distribution of Ecological Red Wings in Provinces (Regions)" Guidance document for work. According to the relevant work plan, before the end of this year, the MEP will instruct provinces (cities) that support the Beijing-Tianjin-Hebei and Yangtze River economic belts to complete the demarcation of the ecological protection red line and complete the pilot run of the national ecological protection red line supervision platform according to the plan. By the end of 2018, the red line demarcation of ecological protection in other provinces (autonomous regions and municipalities) across the country will be completed. At present, 10 provinces have completed the red line review of ecological protection, namely Ningxia, Shanghai, Beijing, Tianjin, Chongqing, Yunnan, Jiangxi, Hubei, Anhui and Sichuan.

Source: Shanghai Securities News

 

2. Ministry of Industry and Industry will promote green industry is expected in October related standards will be intensively introduced

Learned from the Ministry of Industry and Information Technology, MIIT will promote green industry. At present, 12 industry associations such as steel, nonferrous metals, petrochemicals and light industry have been organized to take the lead in formulating green design product standards. Relevant standards are expected to be released intensively in October.

Department of energy-saving and comprehensive utilization of the letter said the person in charge of the Ministry of Industry and Information Technology will strengthen product life cycle management, accelerate product green design. During the "Thirteenth Five-year Plan" period, pilot demonstration of green design will be carried out to formulate green product evaluation standards. By 2020, it will strive to create 100 green design demonstration enterprises and 100 green design centers and develop and popularize 10,000 kinds of green products. At present, the Ministry of Industry and Information Technology is accelerating the formulation of more than 50 evaluation standards for green design products. It is expected that a batch of new green design product evaluation standards will be released in October.

The source also said that the Ministry of Industry and Information Technology will implement green manufacturing in an all-round way and build a green manufacturing system. While making efforts to reduce energy consumption, reduce costs and reduce consumption, the Ministry of Industry and Information Technology will actively cultivate new momentum for green development and improve the quality and efficiency.

Source: Shanghai Securities News

 

(B) Foreign news

1. India's green bond issuance scale doubled this year hit a record 3 billion U.S. dollars

India has always been highly concerned with the development of new energy sources. Its issuance of green bonds also hit a record high of 3 billion U.S. dollars this year, double that of last year. When weighing green bonds in China and India, investors tend to favor the latter's green bonds because of China's tighter controls on the use of green bonds.

In India, there is no clear regulatory requirement for the use of funds raised by green bonds. In China, NDRC allowed issuers to repay bank loans and replenish their working capital with up to 50% of their funds. Another difference is that some green bond projects in China, such as clean coal and some hydropower projects, are not in line with the global green bond standards.

Source: EconomicTimes

 

2. India's New Energy Company to Issue Green Masala Bonds in the United Kingdom

India's New Energy Development Corporation has issued a new green Masala bond on the London international securities market to raise funds for India's new energy projects. The bond issue size of 300 million US dollars, a period of five years, the coupon rate of 7.125%, is the first issue of overseas bonds issued by Indian companies overseas.

Source: Bloomberg

 

3. Investors are in high demand for Munifin's green bonds

Munifin on September 26, 2017 issued a 10-year € 500 million green bond. This is the second green bond issued by the company and the company's first green bond denominated in euros. Investors demand for the bond subscription from the very beginning, and finally achieved nearly 6 times oversubscribed.

Source: Globe NewsWire

 

4. BNP Paribas issues green bonds to mitigate the effects of climate change

On October 5, BNP Paribas Asset Management released a new € 100 million Parvest Green Bond to invest in green bonds aimed at mitigating the effects of climate change. BNP Paribas has long been a leader in SRI and manages over € 30 billion in SRI portfolios, including over € 500 million in green bonds.

The green bond will be based on the MSCI Global Green Bond Index with investment targets above B- and over 83.5% of total investment in green bonds. Investments include futures, options and swaps. The green bond will be sold in Austria, France, Germany, Luxembourg and the United Kingdom.

According to BNP Paribas' research, between the present and 2030 there will be an annual investment demand of 4 trillion U.S. dollars in the conversion of low-carbon energy; at the same time, the global fixed-income market has a total of 100 trillion U.S. dollars of outstanding Bonds and green bonds will be the best bridge to connect investment demand for energy conversion with the supply of fixed-income markets, ultimately contributing to building a low-carbon and environment-friendly society.

Source: BNP Paribas

 

Policy Academic Trends

(A) policy introduction

1. National Development and Reform Commission issued the northern region clean heating price policy advice

On September 25, 2017, in order to implement the Party Central Committee and State Council's decision-making plan on promoting clean heating in the northern region and accelerate the promotion of clean heating, according to the guideline of "enterprise-oriented, government-driven and residents sustainable", we should follow the measures to local conditions and highlight the key points , Co-ordinating the principle of coordination, Development and Reform Commission formulated the "Opinions on the policy of clean heating prices in the north," gas should be gas, electricity and electricity should be aimed at establishing a clean heating price mechanism to comprehensively improve the peak valley price ladder price , Expand market-based trading and other price support policies to promote the northern region to accelerate the implementation of clean heating.

Opinion pointed out that, with resources, suitable for "coal to electricity" area, through the improvement of time-of-valley and the ladder price policy, innovation in electricity trading, improve transmission and distribution system, and other means to reduce the cost of clean heating electricity; natural gas Resources are safeguarded, suitable for "coal to gas" areas, through the improvement of the ladder price system, the implementation of seasonal price policy, the use of market-oriented trading mechanism, comprehensively reduce the cost of clean heating gas, focusing on rural "coal to gas" ; Should scientifically and reasonably formulate heating prices, coordinate the relationship between different heating methods, both to encourage enterprises to develop clean heating projects, but also to allow residents to protect clean and heating smoothly.

Source: Development and Reform Commission website

 

2. Development and Reform Commission issued a special energy-saving equipment and environmental protection business income tax preferential directory (2017 version)

On September 26, 2017, with the agreement of the State Council, the Company appropriately adjusted the applicable catalogs for enterprises that purchase and actually use special equipment for energy saving, water saving and environmental protection to enjoy the preferential policies of corporate income tax credit, and unifiedly adopted the "Enterprise Income Tax Preferential Treatment for Energy Saving and Water Saving Special Equipment Catalog (2017 Edition) "and" Environmental Protection Special Equipment Enterprise Income Tax Preferential Targets (2017 version) ".

In accordance with the requirements of the State Council on simplifying administrative examination and approval, the preferential management mechanism should be further optimized, the enterprises should declare themselves directly and enjoy the preferential treatment directly, and the tax department should strengthen the follow-up management mechanism. Enterprises purchasing special equipment for energy saving, water saving and environment protection shall determine their own compliance with the preferential tax policies and regulations, and directly enjoy the preferential tax treatment upon the fulfillment of the preferential procedures for enterprise income tax according to the regulations, and the tax department shall adopt tax risk management, inspection and tax assessment Other ways to strengthen the follow-up management.

Establish coordination mechanism for departments and earnestly implement preferential tax credit for special equipment for energy saving, water saving and environmental protection. Tax authorities in the implementation of preferential tax policies can not accurately determine the special equipment purchased by enterprises meet the relevant technical indicators and other preferential tax policies and conditions may be brought to the municipal (or more) development and reform, industry and information technology, environmental protection And other departments, commissioned by their professional agencies to issue technical appraisal opinion, the relevant departments should actively cooperate. If the tax authorities do not meet the conditions stipulated in the preferential taxation policies, they shall be dealt with accordingly according to the Law of the People's Republic of China on Tax Collection and Administration and other relevant provisions.

The new directory will come into effect on January 1, 2017. The "Catalog of Corporate Income Taxes for Energy-saving and Water-saving Special Equipment (2008 Edition)" and the "Catalog of Corporate Income Taxes for Environmental Protection Equipment (2008 Edition)" shall be abolished from October 1, 2017 and the enterprise shall be terminated from January 1, 2017 to 2017 September 30, special equipment purchased in line with the 2008 edition of the preferential directory requirements, can also enjoy the tax benefits.

Source: Development and Reform Commission website

 

(B) academic conference

1. China-Luxembourg Green Finance Forum Held at Central University of Finance and Economics

Sponsored by the Central University of Finance and Economics Institute of International Finance, the Luxembourg Stock Exchange and China Securities Index Co., Ltd., the "China-Luxembourg Green Finance Innovation Forum" supported by the China Finance Association's Green Finance Committee recently held at the Central University of Finance and Economics. At the meeting, the Central University of Finance and the Green Institute of International Finance, the Luxembourg Stock Exchange, China Securities Index Co., Ltd. jointly announced the "CSI 300 green leading stock index", the index of the market will be officially released in the near future.

An important agenda for the conference is to announce the CSI 300 Green Leading Stock Index. The CSI 300 Green Leading Stock Index measures the green level of listed companies in a comprehensive and innovative way. The method includes three parts: qualitative indicators, quantitative indicators and negative environmental behaviors of listed companies. The first part is a qualitative indicator similar to the international ESG index. In the "environmental dimension", more in-depth and suitable domestic indicators are developed to measure the green supply Chain and pollution control, from the enterprise's green development strategy and policy, the green life cycle of the supply chain to determine the extent of its green development. The second part is quantitative indicators to measure pollution discharge, energy consumption, resource consumption and green income. Such quantitative indicators ensure the selection of relevant industries with a high proportion of green income in line with the development direction of national industrial policies. The third part is the negative behavior of listed companies, including corporate negative environmental news and government environmental penalties, through the cooperation with big data companies, the use of "catch insects" technology, business negative environmental news is selected and manually filtered to confirm its authenticity, such Public opinion indicators improve the environmental reliability of selected enterprises. The CSI 300 Green Leading Stock Index adopts this innovative methodology to take the CSI 300 Listed Companies (CSI 300 Index) as a sample and select the top 100 of all green scores in the sample to form "CSI 300 Green Leading Stock Index. " In addition, the Institute of Green Finance at CUC will work with CSI and Fund to develop the ETF (Exchange Traded Fund) for the CSI 300 Green Leading Stock Index and will work with the Luxembourg Exchange to disseminate the index.

Source: Economic Reference

 

2. UNIDO hosts the Green Belt and Road Economic City Development Conference

On September 26, 2017, the United Nations Industrial Development Organization (UNIDO) held the 2nd Urban Green Economic Development Conference on "Belt and Road" in Vienna on the 26th with participants from 131 cities and enterprises and institutions in over 60 countries , Exchange and win-win cooperation.

In his speech, UNIDO Director General Li Yong said in his speech that UNIDO encourages cities and partners along the Belt and Road initiative to lead the sustainable urban development in the future. He said that industry can radically change work, lifestyles and the natural environment, creating new jobs and boosting economic prosperity.

It is learned that the purpose of this meeting is to promote the implementation of the Belt and Road initiative to help cities and enterprises seek cooperation opportunities and achieve win-win cooperation. At present, UNIDO, taking advantage of its own platform, integrates various resources and works with the World Bank and other agencies to establish a bridge of cooperation for cities along the "One Belt and Road" to promote inclusive and sustainable industrial development.

Source: Xinhua News Agency

 

3. China and Norway to explore green innovation and smart urban development cooperation

On September 27, 2017, China-Norway Forum on Green Innovation and Smart Cities was held in Oslo, the capital of Norway. Representatives from the Chinese and Norwegian governments, enterprises and trade organizations held discussions on the development status and cooperation prospects in the relevant fields of the two countries.

Oliver Heus, President of Norway's Innovation Agency Asia, said at the forum that Norway and China signed bilateral cooperation documents in various fields such as economy and trade, scientific research, sports and health this year and that the Norwegian Innovation Agency is committed to making these agreements to Norway Term success with Chinese enterprises and hopes that this forum will enable both sides to carry out fruitful cooperation in the fields of green innovation and smart city.

Zhou Dalin, Counselor at the Commercial Section of the Chinese Embassy in Norway, said that after nearly 40 years of rapid development, China has now reached a new stage of development and is actively implementing the five major development concepts of innovation, coordination, greenness, openness and sharing. In the meantime, all sectors in Norway attach great importance to innovation and sustainable development. The theme of this forum is very much in line with the current focus of the two countries and will surely help deepen bilateral cooperation.

Shi Dinghuan, chairman of the World Organization for Green Design, said that the Nordic countries, including Norway, have accumulated many valuable experience in green development concepts, strategies and technological innovations. In particular, they can learn from the wisdom and green requirements of urban and rural planning and construction Carry out systematic integration and make full use of new materials and new energy sources. We hope this forum will bring more cooperation projects and development plans for both sides in the field of green development.

On the forum of the day, representatives from agencies and enterprises such as the Investment Promotion Bureau of China's Ministry of Commerce, the Norwegian Torang Company, Huawei Norway Company, China Smart City Industry Alliance also made speeches on green innovation, resource optimization, technological innovation, shared economy and energy recycling Use and cooperation between China and Norway and other topics were discussed.

Source: Xinhua News Agency

 

4. The EU pledged to invest more than 550 million euros to govern the oceans

On October 6, 2017, the EU High Representative for Foreign Affairs and Security Policy Mogherini announced at the 4th "Our Ocean" International Conference held in Malta on the 5th that the EU will invest more than 550 million euros in 36 action-oriented governance ocean.

Mogherini said that in recent years the oceans have become increasingly unhealthy, and by 2050 there may be more plastic in the oceans than fish. "The poison we throw into the sea returns to the table and hides in the food we eat ". At the same time, the oceans are also becoming increasingly insecure and frequent bad weather such as hurricanes