The amount will be used to finance low-carbon rail transport
Climate Bonds is thrilled to announce another Certified issuance out of China. On 20 October 2022, the Agricultural Bank of China successfully issued CNY20bn in green financial bonds in the interbank market bookkeeping, including CNY15bn with a 3-year maturity priced at 2.40% and a 5-year term which is CNY5bn priced at 2.80%. With an average subscription of 2.5 times, the issuance was Certified by the Climate Bonds Initiative under Climate Bonds Standard 3.0. and attracted nearly 150 institutional investors. All the UoP raised will be used for the low-carbon rail transport.
The funded green projects meet the following:
China Green Bond Principles
The EU-China Common Ground Taxonomy (Updated Edition): the bond is the largest green finance bond in the catalogue
Green Bond Principles by International Capital Market Association
Climate Bonds Standard 3.0
With the launch of the Green Bond Endorsed Projects Catalogue (2021 Edition) and the EU-China Common Ground Taxonomy, China's green bond standards will further align with international standards. Looking ahead, China needs a larger, high-quality green and sustainable financial market to support the achievement of China's carbon-peak and carbon-neutrality goals and the low-carbon transition of the economy.
Sean Kidney, CEO, Climate Bonds Initiative:
“Congratulations! The Agricultural Bank of China is at the forefront of shifting capital towards low carbon solutions and the larger transition to net-zero. Pioneering issuers from emerging and developing economies are particularly welcome as they lead the way, adding depth and diversity to global and regional markets.”
Climate Bonds will continue to fully support the convergence of domestic green bond standards with international green bond standards, ensure the quality of bond-backed projects, and enhance the attractiveness of domestic bonds to domestic and foreign investors.
Learn more about the Climate Bonds Certification scheme at: https://www.climatebonds.net/certification/certified-bonds
‘Til next time.