INTERNATIONAL INSTITUTE OF GREEN FINANCE, CUFE
Chinese Version

Green Bond Weekly 26.2-4.3

Time:2018-03-09 From: Author:

 

Issuance

 

Bond name

Issue date

Maturity (years)

Rating

Coupon rate

Bond type

GB

Amount (RMB)

18 Sangde CP002

01/03/18

1,00

A-1

5,37

Short-term financing bill

2

10,00

18 Beijing Infrastructure Investment SCP001

01/03/18

0,49


4,45

Short-term financing bill

4

20,00

Total







30,00

Source: Wind Securities

 

There were no issuances in the green bond market in the past week.

 

There were two green bond issuances in the non-labeled green bond market in the past week. 18 Sand CP002 was issued with a coupon rate of 5.37%, with a maturity of 1 year and a face value of 1 billion yuan.

18 Beijing Capital Investment SCP001 holds an interest rate of 4.45%, an issuance period of 0.49 years, and has a face value of 2 billion yuan.

The total amount of non-labeled green bonds amounted to 3 billion yuan.

As of this week, a total of 3 green bonds have been issued in 2018. The amount of green bonds totals 2.4 billion yuan; meanwhile, 18 non-labeled Green Bonds have been issued in aggregate, which amounts to 52.238 billion Yuan.

 

Green Bond Index Movements


The high-grade green bond index and the high-grade non-labeled green bond index of the China Finance-National Certificate of Security showed an overall upward trend this week. The high-grade green bond index (wealth) closing price was 133.7113, up 0.38%; high-grade non-labeled green bond index (wealth) closed at 133.5380, up 0.42%; high-grade labeling green bond index (Wealth) ended the week at 102.2877, up 0.20%.

 

Market News

Domestic News

 

1. First green bond issuance by the Nansha Free Trade Zone; funds to go towards the recycling paper

On February 26th, Guangzhou Yuexiu Group Co., Ltd., First Phase Green Note, 2018 was successfully issued. The first issuance of the 2 billion yuan bond, with a running time of 5 years, was underwritten by China’s Equator Bank, Industrial Bank Guangzhou Branch.

This green bond is the first single green bond of Yuexiu Group and Guangzhou Paper Group, and is also the first green bond from the national paper industry, the national green financial reform experimental zone, South China, and the Nansha Free Trade Zone. The funds raised will be fully used for the recycling of paper.

 

On February 5, the green bond was approved for registration by the China Association of Interbank Market Dealers. The green bond was evaluated and certified by a professional third-party company, Green Finance, and it also obtained environmental risk analysis technical support from EnRobot, the country's first green finance artificial intelligence engine developed jointly by iGreenBank and the Green Finance Technology Laboratory.

Source: Yangcheng Evening News

 

Foreign News

 

1. Belgium's first sovereign green bond raises 4.5 billion euros

Belgium issued the countries first sovereign green bond valued at 4.5 billion euros. The bonds maturity is 15 years (expires on April 22, 2033) and the coupon rate is 1.25%. Barclays Bank, BNP Paribas Fortis Group, Crédit Agricole Bank, Dutch International Group and JP Morgan Chase were appointed as joint bookrunner for bond issuance.

The Belgian government stated that the funds will be used to fund five major green industry projects, namely, clean transportation, energy efficiency, renewable energy, waste management, and recycling products. The issuance has made made Belgium the third country in Europe after Poland and France to create such a financial instruments.

Source: Oriental Wealth

 

2. India plans to issue the first green municipal bond

India’s Ahmedaba Municipality announced plans to issue a Rs 2,000 green bond in the fiscal year of 2018-19 and raise funds for waste management. Ahmedaba Municipality will apply biotechnology in urban landfills to reduce and recover waste from landfills. At present, many cities in India have successfully used this technology to improve the efficiency of waste disposal.

The bond is the first of its kind issued by an Indian municipal government. The issuance plan has opened up new roads for Indian municipalities to attract foreign investment. In addition, the Indian government has authorized several public companies to issue green bonds worth at least US$1 billion. Most of these bonds involve projects related to renewable energy and high-efficiency energy.

Source: cleanfuture

 

3. California Investors Interest in Green Bonds Increase

On 28th of february California Office of the Treasurer announced survey results of investment preferences and expectations by Californian investors.

The results are good news for California's green debt market. Nearly four-fifths of Californian investors hope their investments can help shape a better world. The study also found that if you want to stimulate investors' enthusiasm for investing in the California green bond market, it is key to increase investors' understanding of the market and market transparency. Although 66% of respondents said that they will invest in green bonds that have a positive impact on the environment, only 53% believe they have an adequate understanding of ESG investments, and only 29% believe they understand green bonds.

The states tax incentives offered by green securities may not yet be fully understood, as only 11% of people say they will reduce their tax liability through investment. Increasing education and promotion of these incentives might work to help further the growth of sustainable investments in California. 

The study also found that investors are very concerned about the degree of disclosure and accuracy of green bonds. Nearly three-quarters of investors said that higher levels of transparency and standardization will increase their interest in green bonds, and 60% of investors are willing to invest more in more transparent green debt projects.

Most California residents want their investment to have a positive social and environmental impact, said David Goodsell, executive director of the Investor Research Center at the French Foreign Trade Bank.

Source: mysocialgoodnews

 

Academia 

Policy

 

1. Notice issued by the General Affairs Department of the National Energy Administration on the release of the monitoring and evaluation results of the 2017 photovoltaic market environment

March 1, 2018, The National Energy Administration announced the results of 2017 annual monitoring and evaluation of photovoltaic market environment. This evaluation result will serve as an important basis for strengthening the photovoltaic industry management and guiding the orderly development of all regions (Guo Nengfa Xinneng [2017] No. 79).

 

Source: National Energy Administration

 

Academic Conference

1. Huzhou explores establishing the first local green certification evaluation system

On March 1st, 2018, Huzhou City held a meeting on prospects of establishing an enterprise evaluation index system. Local agencies have collected data on the issue over the past six months and the project is entering its final stage now.  

Huzhou City's green project and corporate assessment evaluation index system is based on the "Personal Statistics System for Green Loans" of the People's Bank of China, the "Green Credit Guidelines" of the China Banking Regulatory Commission, the "Green Bond Issuance Guidelines" of the National Development and Reform Commission, and the "Green Bonds" of the China Finance Institute Green Finance Committee.

Huzhou City is situated in Zhejiang province, one of five provinces designated as a green pilot zone by the central bank last summer.

The system aims to gather professional agencies, private companies government departments, financial institutions, and other forces to special entities in collecting data, exchange experiences and evaluate performances in green finance.

In the next step, Huzhou will invite financial management departments and experts in the green finance industry to further certify and improve the indicator system.

Source: Huzhou Financial Network

 

Liang Siyi Zhu Xiaoye