Time：2018-03-19 From： Author：
Green Bond Weekly: 5.3-11.3
|Bond name||Issue date||Maturity (years)||Rating||Coupon rate||Bond type||GB||Amount (RMB)|
|18 Jin-mei Group GN002||06/03/18||3,00||AAA||5,70||Medium-term note||2||10,00|
|18 New Y1||08/03/18||3,00||AAA||5,96||Corporate debt||5||5,90|
This week, there were two issuances in the green bond market. 18 Jinneng GN002 was issued with a coupon rate of 5.70% and an issuance period of 3 years. The funds will be directed towards high-sulfur coal clean utilization projects. The green bond amount is RMB 1 billion yuan.
The G18 new Y1-bond has a coupon rate of 5.96%. The issuance period is 3 years. The funds are used for the construction, operation, acquisition and repayment of green industry projects. The green bond amount is RMB 590 million yuan.
|Bond name||Issue date||Maturity (years)||Rating||Coupon rate||Bond type||GB||Amount (RMB)|
|18 Jingneng Greenergy SCP001||06/03/18||0,66||4,98||Short-term financing bill||5||10,00|
|18 Railway 05||07/03/18||5,00||AAA||4,91||Government supported institutional debt||4||150,00|
|18 Railway 06||07/03/18||10,00||AAA||4,91||Government supported institutional debt||4||50,00|
|18 Sangde SCP002||07/03/18||0,74||5,34||Short-term financing bill||2||5,00|
|18 Eastern Garden SCP001||09/03/18||0,74||5,99||Short-term financing bill||6||10,00|
There were five non-labeled green bond issuances in the past week (see table above)
As of this week, there has been 5 new green bonds issuances in 2018, setting the total amount at 3.99 billion yuan; 22 non-labeled green bonds have been issued totalling 72.738 billion yuan.
二, market trends
The high-grade green bond index and the high-grade non-labeled green bond index of the China Finance-Guoguo Securities Exchange Co., Ltd. fluctuated significantly this past week, but finally settled on a slight uptick.
1. Zhejiang Province issued an action plan and three checklists to promote the construction of a green finance pilot area
Zhejiang Provincial Leading Group Office for Promoting of Green Finance issued the “Action Plan for Promoting the Construction of a Green Financial Reform and Innovation Pilot Zone in Huzhou City and Chenzhou City” were it laid out plan for the next five years, as well as the designation of work tasks, main objectives, and selective responsible units. Furthermore the plan feature a list of financial policies, financial products and services, and various measures on how to improve the green financial pilot areas in Huzhou and Zhuozhou.
The Action Plan clarified that the main goal is to achieve growth in green financing in Huzhou City and Luzhou City within the next five years. The proportion of green credit balance to total loan balances and green financing to social financing should increase year by year. "High pollution, high energy consumption” (两高一剩) industries have been declining year by year and the rate of non-performing green loans is currently not any higher than the conventional bonds, while the energy consumption per unit of GDP, major pollutants and carbon dioxide emissions have fallen more than the country-average.
Source: China Financial Information Network
2. The central bank regulates the disclosure of information on the maturity of green financial bonds Supervision and verification of the use of raised funds
Recently, the Central Bank issued the "PBC Notice on Strengthening the Supervision and Administration of the Continuation Period of Green Financial Bonds", as well as the "Information Disclosure Regulations on the Duration of Green Financial Bonds".
The two notices show that in order to further improve the supervision and management of the duration of green financial bonds, enhance the transparency of information disclosure, and encourage the issuer to increase support for green development, relevant agencies will strengthen the supervision and the inspection of funds raised in the green bond market.
The main focus is on the issuance and the progress of the usage of raised funds. Agencies should focus on the authenticity of the funds raised by the issuer for green projects, compliance with screening and decision-making procedures, the management of raised funds, and subsequently the achievement of environmental benefits goals. On-site verification should cover all the green financial bond issuers in the jurisdiction within a given year, and at least 20% of green bond proceeds should be verified on sight.
The regulations require that quarterly reports on the use of funds should focus on the use of funds raised during the reporting period. The content of the quarterly report shall include, but not be limited to, the amount of newly-added green items in the reporting period, the amount of expired items that have already been placed, the balance and quantity of projects initiated by the end of the reporting period
Balance and quantity are briefly analysed. The annual report on the use of funds raised from green financial bonds shall fully explain the overall use of funds raised in the reporting year and the expected or already proven environmental benefits. The content of the annual report shall include the newly-added green items during the reporting period, the amount of expired projects, the balance of and the quantity of projects initiated by the end of the reporting period, the management and use of idle funds, the status of green projects launched, and the expected or already proven environmental benefits, plus a detailed analysis and display of related content.
The issuer should disclose the status of green projects launched during the reporting period in the annual report. For projects where the top 10% of the amount is raised from green bonds, and/or projects with a value of 50 million yuan or more than 1% more of the green financial bond stock size, should be disclosed one by one according to the project; for other projects, a summarized disclosure by category will suffice.
The issuer should select a typical green project case for detailed analysis in the annual report. A typical green project case is a project at a large scale or with significant environmental benefits. This project should be studied in detail and project details and expected or actual environmental benefits should be included in the report. The issuer should disclose information such as major pollution liability, accidents or other environmental violations in companies that have received proceeds from green financial – this is a requirement for both the quarterly and yearly reports.
The two notices furthermore encourage issuers to disclose methods of measuring on how environmental benefits are assessed in their annual reports. As well as encourage the issuer to highlight characteristics of their investments in green financial bonds according to their understanding, disclose key areas of investment, and clearly state excluded investment areas.
Source: People's Bank of China
1. Credit Suisse plans to issue its first green bond
Credit Suisse plans to issue its first green bond. The Swiss bank said it will publish relevant release details and framework documents in a series of reports in Europe next week. Funds raised from the green bond will mainly be used for projects involving sustainable energy and climate action. The use of funds is consistent with the UN's sustainable development goals.
Credit Suisse established a new department in September last year. Marisa Drew, the former co-head of investment banking and market operations, heads the department. The main responsibilities of this department is to manage green finance projects and ensure that the use and management of bond funds is in accordance with the leading green bond principles.
Last year, the amount of issued green bond hit a record of 119 billion U.S. dollars. According to UniCredit, half of it comes from Europe, with Asia accounting for 27% of transactions headed by China, and North America accounting for 13%. At present, the circulation of green bonds is still rising, and according to the prediction of UniCredit, the amount of green bonds issued this year will reach approximately 130 billion US dollars.
1. Notice issued by the National Energy Administration on the release of 2018 annual wind power investment monitoring and warning results
On March 5th, in order to guide rational investment in wind power companies, urge all regions to improve the investment environment for wind power development and construction, and promote the sustained and healthy development of the wind power industry, the National Energy Administration announced its results from the monitoring and early warning of wind power development investment by provinces (autonomous regions and municipalities).
According to the notice Gansu, Xinjiang (including Bingtuan), and Jilin are in red warning areas. Inner Mongolia and Heilongjiang are the early-warning regions (orange), and Zhuozhou City, Ganzhou City and Datong City in northern Shanxi, Yulin City in northern Shaanxi, Zhangjiakou City and Chengde City in Hebei Province are in orange areas as well. Other provinces and regions are in green warning areas. Red alert areas has suspended the development of wind power and focused on taking effective measures to solve the problem of stock wind power consumption. The approved wind power projects have been postponed and listed in the wind power projects that have not been approved for the next annual implementation plan. The power grid companies will stop accepting applications for grid-connections related to the delayed and suspended projects. In addition to the wind power projects that have been planned and included in the annual implementation plan and the demonstration projects and market-based bidding projects that have been planned and included in the annual implementation plan, the orange warning area will no longer increase its annual construction. Projects that have been included in the annual implementation plan can continue to be approved for construction. Areas labelled green will continue to organize the construction of wind power projects in line with relevant requirements. However, it is necessary to grasp the rhythm of construction of wind power projects and promote the orderly implementation of market conditions, so as to avoid power cuts.
Source: National Energy Administration
2. Notice of the National Energy Administration on Printing Guidance for Energy Work in 2018
On March 5th, in order to fully implement the work of the 19th National Congress of the Communist Party of China, to do a good job of energy work in 2018 and promote the smooth implementation of the “13th Five-Year Plan”, the National Energy Administration issued the “Guidelines for Energy Work in 2018”.
The circular stipulates that in order to fully implement the spirit of the Nineteenth National Congress of the Communist Party of China and use Xi Jinping’s socialist ideology with Chinese characteristics in the new era, stakeholders must adhere to the principle of striving for progress, the concept of new development, follow the strategic concept of energy security, and develop in accordance with high quality standards. It is required to promote the structural reform of the supply side as the main line, promote changes in the quality of energy development, changes in efficiency, and change in power-utilisation. Focus on solving the problem energy development imbalances, strengthen the foundation, adjust the structure, promote reforms, and benefit the people. Students will work hard to build a clean, low-carbon, safe and efficient energy system and provide a solid energy guarantee for economic and social development and a better life for the people. Pay more attention to green and low-carbon development. Pay more attention to improving the quality of the energy supply system. More emphasis on improving energy system efficiency. More emphasis on innovation-driven development. Pay more attention to safeguarding and improving people's livelihood. More emphasis on openness, cooperation, and win-win development. More attention will be paid to deepening energy governance by law. Overall planning and optimization of hydropower development and utilization. Safely promote the development of nuclear power. Steady development of wind power and solar power generation. Actively develop new energy sources such as biomass. Promote the use of natural gas in an orderly manner. Promote the efficient development and utilization of green coal. Continue to promote the upgrading of oil quality. We will vigorously promote the conservation and utilization of energy resources. Raise the level of clean energy consumption in the terminal. Continue to promote the elimination of excess coal production capacity. Promote the elimination of excess coal power capacity. Efforts to solve the problem of clean energy consumption. Enhanced oil and gas reserve emergency response capabilities. Improve oil and gas supply support capabilities. Further improve the power grid structure. Accelerate the construction of oil and gas pipeline networks. Deepen the reform of the power system. Accelerate the reform of the oil and gas system.
Source: National Energy Administration
五, Academic Conference
1. United Nations Environment Programme and World Bank Group publish research report "Road map of sustainable financial system"
A few days ago, the United Nations Environment Programme and the World Bank Group issued a study entitled "The Roadmap to the Sustainable Financial System", saying that it is of utmost importance for governments and the private sector to create a global financial system that meets their needs.
The report pointed out that sustainable development requires trillions of dollars in investment each year, and most of them must come from financial and capital markets around the world. The report “The road map for a sustainable financial system” was prepared by UNEP’s “Exploration of Sustainable Financial System Design” and the World Bank. It elaborated on how to create a financial system that incorporates sustainability considerations to guide the flow of resources to be more inclusive. And sustainable areas.
The report found that sustainable financial systems are already in transition through interactions between markets, national and international initiatives. Through market-based initiatives such as the Sustainable Banking Network (SBN) and the UN Environment Finance Initiative, private and public financial institutions have begun to integrate environmental and social risks and opportunities into their business models. In particular, digital finance or innovative financial technology (Fintech) has the potential to generate environmental effects and support the transformation of financing for sustainable development.
The report believes that the next 24 months will be crucial for continuing to promote sustainable financing. “Making the global financial system consistent with sustainable development and becoming mainstream must go beyond the boundaries of marginal innovation and shape the infrastructure of this financial system.” Simon Zade, Co-Head of UNEP's “Exploration of Sustainable Financial System Design” Ke said: “The road map for the Sustainable Financial System shows how to transform advanced practices into systematic changes and the role of the changed financial system in modern society.”
Source: Sina Finance
Hu Zhiyan Wang Hao