CICC Supports the Global Issuance of CDB's Special Green Bond

2021-07-21Corporate News

On July 16, China Development Bank (CDB) successfully issued two special green bonds featuring the theme of "ecological protection and high-quality development in the Yellow River Basin". CICC serves as the underwriter of this issuance, contributing its strength to facilitate the ecological protection and high-quality development in the Yellow River Basin. Besides, the company is actively responding to China's "carbon peak" and "carbon neutrality" strategies, making efforts to put the national major regional plans into effect.

"Special green bonds characterized by the Yellow River Basin"

The successful issuance of CDB's Bond Connect Special Green Financial Bonds can be seen as another milestone for building a green financial system. The bonds have 1 fixed-rate type and 1 floating-rate type, applies wholesale and retail model, and will be issued in both domestic and overseas markets. The bonds will be simultaneously issued at China Central Depository & Clearing Co., Ltd. (CCDC) and DR standard is introduced to green bonds for the first time to attract more social capital to participate in green and low-carbon development. There are two "Yellow River Basin special green bonds" with total issuance of ¥10 billion at the issuance rates of 2.58% and 2.55% respectively. The overall subscription rate reached 9.08 and 7.57 separately, showing strong recognition and support for green finance from global investors.

The bonds are in line with the regulations and standards of PBoC's Green Bond Endorsed Project Catalogue, International Capital Market Association's Green Bond Regulation and Climate Bonds Initiative's (CBI) Climate Bond Standard. Besides, certifications were labeled by third party institutions CBI and Lianhe Equator. All the funds will be used to provide loans for the green upgrade of infrastructures in the 9 provinces and regions at Yellow River Basin. 20,100 tons of carbon dioxide emissions, 34.99 tons of nitrogen oxides and 0.66 ton of inhalable particles (PM 10) will be reduced each year, saving 10,000 tons of standard coal.

As one of the leading investment banks in the capital market, CICC will keep pushing for the promotion and innovation of green financing instruments. In March 2021, as the only main underwriter among brokerages, CICC supported the biggest-ever issuance of CDB's carbon neutrality bond. It was also China’s first carbon neutrality green financial bond facing global investors.

In this "Yellow River Basin Special Green Bond" issuance, CICC once again joined hands with CDB to build a bridge of communication between China Development Bank and investors both at home and abroad. What's more, CICC, together with global investors, cooperated with CDB to facilitate the ecological protection of the Yellow River Basin, implementing and promoting the concept of green finance with practical actions on a global basis.

CICC expects that China's green bonds issuance will reach a record high in 2021. CICC will keep following the concept of green development, boosting the building of green financial market in a diversified way and contributing its strength to the realization of "carbon peak" and "carbon neutrality".