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Green Bond Focus: 04.12-10.12

Time:2017-12-18 From: Author:

Market Trends

 

1)    Domestic News

1.     China General Nuclear Power Corporation’s First Issuance of Foreign Euro Green Bonds

      On December 5th, which is the 2nd anniversary of the signing of the "Paris Agreement", China General Nuclear Power Corporation (CGN) successfully issued 5-year, 7-year, 10-year overseas senior unsecured bonds, and raised funds of 500 million euros and $900 million dollars. The 500-million-euro bond is green international bond, which will be used to fund CGN Europe Energy’s investment in green renewable energy projects located in Europe.

      This is the first time that CGN issued euro bonds, and also the first time it issued foreign green bonds. At the same time, this marks the largest foreign bonds CGN has ever issued in the international capital market, with the highest participation of international bond investors ever seen in a bond issuance.

 

Source: European Times

           

2.     The Country’s First Issuance of Specialized Bonds for Small and Micro Enterprises

On December 7th, the country’s first specialized bonds for small and micro enterprises was issued in the inter-bank bond market by Zhejiang Tailong Commercial Bank (often referred to Tailong bank). The issuing scale is 1 billion 500 million yuan and the interest rate is 5.29%. The proceeds of this bond will be put into green projects of four categories: pollution prevention, resource conservation and recycling, clean energy, ecological protection and adaptation to climate change.

The 1-billion-500-million-yuan green bonds issued by Tailong bank provide more than 3200 green credit projects, of which projects of 1 million and below accounted for 70.62%, with an average of only 430 thousand and 400 yuan each.

 

2)    International News

1.       Indian Railway Finance Corporation Successfully Issued Green Bonds on The London  Stock Exchange

On December 6, 2017, India Railway Finance Company (IRFC) issued $500 million dollars of green bonds with a yield of 3.835%. The bonds are listed on the London Stock Exchange's new international stock market (ISM). The London Stock Exchange said that the ten-year bonds are oversubscribed for more than three times, receiving strong support from international investors.

IRFC will use the proceeds of the bond to finance or refinance the infrastructure of dedicated freight railway lines and public passenger transport. SK Pattanayak, managing director of IRFC, said that releasing green bonds for the first time time is an important milestone for IRFC, providing support for the company's infrastructure green projects.

The India railway company is the third enterprise that is listed in London by issuing certified green bonds and being supported by the state. The IRFC green bonds and the bonds issued recently by IREDA and PFC mean great opportunities for international investors in terms of green energy, transportation and infrastructure. This is the sixth green bond transaction conducted by India issuers on the London Stock Exchange. It's also the fourth green bond transaction in the London Stock Exchange's new international stock market (ISM).

Source: ABP LIVE

 

2. Banco de Oro Universal Bank Issued Philippine’s First Green Bonds

On December 8, 2017, Banco de Oro Universal Bank (BDOUnibank) announced the release of its first green bonds to raise $150 million dollars, part of which would be used to promote the financing for climate change research projects. This is the first time that a Philippine commercial bank issued green bonds.

Nestor Tan, BDO president and chief executive, said the issuance of the bonds shows the commercial measures taken by banks to face the challenges of sustainable development. He believes these measures are consistent with the goal of promoting the development of a new climate finance market in China.

The International Finance Corporation (IFC) is the sole investor of the bond. This green bond provides a new source for the country’s long-term development in green finance. It will only be used for the research of intelligent climate finance projects, including those about renewable energy, green building, and energy-efficient facilities. By 2022, the financing is expected to help reduce 93000 tons of carbon dioxide emissions per year, and contribute to Philippines's goal of reducing 70% carbon emissions by 2030.

Source: Philstar.com

                                                           


Policy Academics Trend

 

1)    Policy Introduction

1.     On December 4th, 2017, China’s National Energy Administration and Ministry of Environmental Protection issued a notice about the contiuned deployement of the pilot project for the technical transformation of foal-fired biomass generators.

According to the notice, the project aims to take advantage of the technology of the world's largest, cleanest and most efficient coal electricity system. Relying on the system and the centralized pollution control facilities, it’s goal is to foster the development of green and clean coal-fired power by converting agricultural and forestry waste residue, garbage, biomass from sewage treatment plants and water sludge into high quality renewable energy power.

The notice also specifies two types of pilot projects: One is about the technical transformation of power generators relying coal, agricultural- and forestry waste residue. This project focuses on 13 major grain-producing provinces and tries to determine a reasonable technical scheme to tackle problems caused by straw and field burning.

The other is about the technical transformation of power generators using coal to turn garbage and sludge into energy. The project is focused on 36 cities, including the municipalities and provincial capitals, regions with large amount of garbage and sludge and those that have limited space or difficulties in utilizing land.

The notice also clarified the requirements for the project organization, related policies, and the project supervision.

                        Source: National Energy Administration Website (www.nea.gov.cn/)

 

 

2) Academic Conference    

1.  The Third United Nations Environment Conference Opened at the UNEP Headquarters in Nairobi, Capital of Kenya

On December 4th, 2017, the Third UN Environment Conference opened at the UNEP headquarters in Nairobi, Kenya. More than 4000 politicians, business leaders and representatives of private sectors from around the world discussed measures to fight pollution for three days.

In speech to the general assembly, the Secretary General of the United Nations, Antonio Guterres, said that long-term effort is needed to achieve the goal of zero pollution. There is hope that the conference will send a warning to show its strong leadership and call on governments to deal with pollution.

The theme of this conference was Zero Polluting Planet, with a stated goal of uniting the power of governments, enterprises, civil society and individuals to take actions against all forms of pollution. The conference will adopt a series of resolutions to address urgent environmental health challenges.

            During the conference, the 2017 Earth Guardian award was awarded: Founded in 2004, it is currently the most influential environmental award of the United Nations system. It is awarded annually by the United Nations Environment Agency to individuals or organizations that have made outstanding contributions in the field of environment.

The United Nations Environment Conference is the highest decision-making mechanism for global environmental issues - its predecessor is the UNEP Governing Council. In 2013, the United Nations General Assembly decided to upgrade the UNEP Council as a United Nations Environment Conference with the participation of representatives of each member state.

            Source: Jjsy.org.cn

 

2.     The Fifth China Social Investment Forum (SIF) Was Held in Beijing      

On December 5th, 2017, the fifth China SIF was held in Beijing. The event was jointly sponsored by Caixin Media, Green Finance Society of the China Society for Finance and Banking, SynTao Green Finance and a other organizations.

            Chinese and foreign business representatives from finance, information management, insurance, and fund industries participated in a sharing their various responsible investment strategies and showed how large institutional investors can lead in the development of global and domestic responsible investment.

            During the forum, 50 listed companies were selected and won the "Beautiful 50 Company" title for their ESG performance in China's A stock market this year.

            The conference also invited domestic and international experts and scholars to discuss topics such as green finance product innovation, ESG information disclosure, ESG asset management, etc.

            Source: www. CNEO.com.cn

 

3.     Green Finance Innovation and Development Round Table Conference Was Held in Beijing

            On December 8th, 2017, the Green Finance Innovation and Development Round Table Conference was held in Beijing. Through discussion and sharing among different regions, the conference aimed to provide a template for the development of green finance in china.

           Representatives from five green finance reform and innovation pilot areas, including Zhejiang, Jiangxi, Guangdong, Guizhou, Xinjiang, introduced told how they were performing in areas ranging from development, land-exploration, green finance and implementation of sustainable practices. They put forward a expectations for future direction.

            The representatives of the financial institutions, such as China Postal Savings Bank, expounded the way for financial institutions to use financial innovation products to support the development of green economy.

            Source: China Social Investment Forum

 

Editor-in-chief: Shi Yingzhe

Commissioning Editor: Li Meng

Editor: Hu Zhiyan, Wang Xiaohan

New Media Editor: Cao Yingying