Bank of China (BOC) just announced its third offshore Green Bond issuance. And it’s Climate Bonds Certified!
This is another big step for China’s development of green finance in the second half of 2017.
The bond marks BOC’s first ever international Climate Bonds Certified offerings. Together with its debut Green Bonds and Green Covered Bonds issued last year, each issuance represents another step towards innovation in sustainability.
As member of Green Bond Principles (GBP) Executive Committee, BOC follows international best practice in reporting and disclosure for green bonds.
They have disclosed the environmental impact estimate of this upcoming issuance. This has clearly demonstrated that the bonds carrying Climate Bonds Certification will have considerable environmental impacts.
The use of proceeds will be dedicated to BOC’s financing and/or refinancing of eligible green projects in renewable energy and clean transportation.
Issued through Paris Branch, Listed on Euronext Access
The bonds will be issued by Bank of China, Paris Branch, and also listed in Paris Euronext Access.
November is the 2nd anniversary of COP21, held in Nov 2015. COP23 is in progress. At this significant moment, the offerings underline that BOC fully supports implementation of the Paris Climate Agreement and is committed to tackling climate change.
Transparent Reporting and Stringent External Review
BOC invited E&Y to do the post-issuance verification through assurance report and has published annual report on proceeds allocation and impacts for July 2016 Green Bonds and November 2016 Green Covered Bonds.
BOC has also completed an impact calculation on its eligible green projects for this offering. They will maintain the stringent external review standard and transparent reporting and disclosure process for the Green Bonds issued.
The Last Word
Latest statements and reports are available from the BOC website.
More details will follow post pricing.
‘Till next time,
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Certification under the Climate Bond Standard only reflects the climate attributes of the use of proceeds of a designated debt instrument. It does not reflect the credit worthiness of the designated debt instrument, nor its compliance with national or international laws.
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