Chinese Version

Green Bond Focus 1.1 - 1.14

Time:2018-01-22 From: Author:

From January 1 to January 14, no new green bonds were issued.

 

In the non-labelled green bond market a total of two green bonds were issued. 


The 500 million RMB-18 Sand Decade SCP001 green bond was issued with a coupon rate of 5.35% and an maturity of 0.74 years.

 

A similar 500 million RMB-18 Sander CP001 with a coupon rate of 5.35% was issued on the same day. The maturity on this is green is 1 year. Total non-labelled green debt amounted to a total of 1 billion RMB in the first two weeks of 2018.

 

Market trends

 

Domestic news 

1. New green debt guidelines

On December 26, 2017, the People's Bank of China and the China Securities Regulatory Commission (CSRC) jointly issued the Guidance on Green Bond Valuation and Accreditation which describes qualification, certification process, regulatory measures, and other aspects related to issuance and handling of green debt. The introduction of these "Guidelines" has filled aims to fill gaps in the existing system, promote market regulation and promote a healthy development of China's green bond market.

Source: China Securities Journal

 

2. PBoC: Carbon emission trading cross-border settlement in RMB

On January 5, 2018, the PBoC released the Circular on Further Perfecting RMB Cross-border Business Policies to Facilitate Trade and Investment Facilitation, which included guidelines on how cross-border carbon emissions trading in RMB should be settled.

 

Source: People's Bank of China

 

(B) Foreign news


1. DMO's first sovereign green bond oversubscribed

In December 2017, the Debt Management Office of Nigeria (DMO) issued its first green bond with a face value of 10.791 billion Nigerian Nira. But the final subscription totalled 10.791 billion Nigerian Nira.

Among the subscribers to the green bonds were banks, pension funds, asset management companies and retail investors. The DMO green bond is a 10.69 billion Nigeria Nira sovereign with a maturity of 5 years and a coupon rate of 13.48%.

The DMO said they were pleased with the strong interest shown, which shows investors' keenness on new products and support of investing in projects that contribute to the protection of the environment, as well as support of Nigeria's commitment to the Paris agreement.

The bond was rated as an "excellent" green bond by Moody's and is part of the federal government's funding projects in the 2017 Appropriations Act. Projects under the Act focus on education, renewable energy and afforestation projects. In a statement released, the DMO said they will continue to work on providing products that meet the needs of investors and continue to promote financial inclusion.

Source: business247news

 

2. Indian Rail Finance's first green bond is listed on BSE India INX

On January 13, 2018, India Railway Finance Corporation's green bonds were officially unveiled at the BSE's India International Exchange and INX's debt marketplace.

Indian Railway Finance's green bonds became the first debt securities to be listed on the GIFT City International Financial Services Center in Gujarat. Last year, Indian Railway Finance Corporation raised $500 million in 10-year green bonds from investors outside Asia by listing on the London Stock Exchange.

"India is the fastest growing economy in the world and we need to continue to raise funds." Piush Goyal, Indian Railways Minister, said at the BSE event: "This issuance will make it easier for global investors and funds to reach Indian companies at a low cost.”  The bonds yield carries an annual rate of 3.835%.

"This listing of INX in India will help us look for opportunities from the global investors in India in the future," said Mohapatra, Chairman of Indian Rail Finance. INX's global equity market is India's first debt market, allowing Indian issuers to raise funds from investors around the world.

Source: BSE

 

 

Policy Academic Trends

 

 

(A) Policy

 

1. "Discharge Permit Management Measures" released

The Ministry of Environmental Protection recently issued the Measures for the Management of Permits for Sewage Discharge (hereinafter referred to as the "Administrative Measures"), which stipulates the procedures for the issuance of sewage discharge-permits and clarifies the legal responsibilities of environmental protection departments, sewage disposal units and third-party agencies. 

In the Administrative Measures five systems will revamp the permit issuance: corporate commitment, self-monitoring, recording of account books, implementation reports and disclosure of information. Corporate commitment and responsibility, integrity and legality of the application materials are important preconditions for obtaining sewage discharge permits. Accounting records and implementation reporting system are some of the measurements that sewerage units monitor themselves.

This is the main basis for self-evidence-based corporate law and, in conjunction with inspections; it helps environmental departments verify whether corporate emissions are up to standards.  

 

Source: Ministry of Environmental Protection of the People's Republic of China

 

2. Announcement on "Technical Policy on Prevention and Control of Pollution Caused by Beverages and Beverages"

On January 11, 2018, in order to thoroughly implement the Environmental Protection and the Cleaner Production Promotion Law of the PRC, a subset of rules regulating wine manufacturing has been released. The attachment includes the following.

The policy is related to the manufacturing of drinks and beverages including; white wine, red wine, beer, fruit wine, and rice wine. The policy hopes to encourage more sustainable production methods within the sector, to prevent and control pollutants in the production process, with regards to air quality, water contamination and soil quality. This has to be done via improved solid waste treatment and disposal utilization.

Source: Ministry of Environmental Protection of the People's Republic of China


 

Authored by the

Central University of Finance and the Green Finance International Research Institute of Green Bond Lab

and the  

Central University of Finance Youth Green Finance Research Green Bond Group