CCDC assists China Development Bank in successfully issuing the first sustainable green finance bond
Source: China Finance News Network Release time: 2019-11-12
News reporter He Lijuan reported that on November 12, 2019, CCDC supported CDB to successfully issue a three-year sustainable development theme green financial bond of 10 billion yuan to global investors through public bidding, with an interest rate of 3.1% and a bid multiple. 3.76. The current bond is the first green financial bond issued by China Development Bank in 2019. It has been certified by EY and meets the principles of green bonds and social bonds. The issue covers the inter-bank bond market and the counter market of commercial banks. All the funds raised will be used for the forestry ecology of Chongqing. Construction and national reserve forests, such as the Yangtze River Protection and Green Development Project, will better serve the Yangtze River Protection and the high-quality development of the Yangtze River Economic Belt. The bond issuance is the implementation of the Fourth Plenary Session of the Nineteenth Central Committee of the Party and the spirit of General Secretary Xi Jinping's important speech on deepening the development of the Yangtze River Economic Belt. It actively implements the concept of green development and will educate the theme of “not forgetting the original heart and remembering the mission”. The results lead to in-depth and important measures, which are conducive to the important role of financial support for the protection of the Yangtze River and green development, and help the innovative development of the green bond market.
In recent years, CCDC has actively assisted CDB in the issuance and innovation of green financial bonds. Since 2017, it has supported CDB's issuance of "air pollution prevention", "Beijing-Tianjin-Hebei coordinated development", "green circular development", and "protection of water resources in the Yangtze River Economic Belt." "And the" Guangdong-Hong Kong-Macao Greater Bay Area Clean Traffic Construction "as the theme of multi-phase green financial bonds, totaling 25 billion yuan. CCDC, as an important national financial infrastructure, actively promotes green financial services to the real economy under the guidance of competent authorities. As of the end of October 2019, service financial institutions and enterprises have issued more than 500 billion yuan of green bonds. In addition, since 2016, CCDC has compiled and published China's first batch of green bond indexes. Among them, the “China Bond-China Climate-Related Bond Index” compiled in cooperation with the International Climate Bonds Initiative (CBI) and China Energy Conservation Consulting Co., Ltd. is the world's first climate-related bond index. The first non-labelled green bond index certificate. In September 2018, ChinaBond-China Green Bond Index, ChinaBond-China Green Bond Select Index and ChinaBond-China Climate-Related Bond Index were listed on the Luxembourg Stock Exchange, showing the construction achievements of China's green finance sector to the international market , Further expanding the degree of opening up of China's green bond market, and increasing its international influence. The issue of CDB green financial bonds in this issue will also be included in the ChinaBond-China Green Bond Index and the ChinaBond-China Green Bond Select Index.
At the same time, CCDC was entrusted by the competent authority to construct and maintain the counter business system, faithfully perform the role of a tier-one custodian of over-the-counter bonds, actively take advantage of the commercial bank's over-the-counter issuance channel, and support CDB to take the lead in issuing green through the over-the-counter market in September 2017 Financial bonds of 600 million yuan have met the investment needs of individuals and small and medium-sized institutions for green bonds, promoted the increase of income for urban and rural residents, and enhanced the sense of gain for the people.
As an important gateway for the opening of China's bond market, CCDC insists on serving foreign institutions to invest in China's bond market through direct market entry and “Bond Connect”. As of the end of October, a total of 1,075 overseas institutions entered the China bond market through CCDC, with a custody value of 1.8 trillion yuan. On this basis, CCDC continued to expand and deepen multi-level communication with overseas financial infrastructure, promoted cross-border interconnection cooperation, and continuously improved its service capabilities for global issuers and investors.
Not forgetting the original intention and keeping in mind the mission, CCDC will work hand in hand with market participants such as China Development Bank under the guidance of the competent authorities to continue to promote innovation in the bond market and focus on promoting green finance to better serve economic and social development and ecological civilization. Through the issuance of green bond commercial counters, it vigorously promotes the awareness of green and responsible investment in the society, continues to promote the construction of China's green bond market, and helps improve the level of opening up of the bond market.