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Green Bond
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Renewable Energy Generation

Renewable Energy Generation

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Waste Reduction

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Carbon Reduction

Pollution Control

Pollution Control

  • Internationally recognized voluntary process guidelines
  • Recommend transparency and disclosure
  • For Issuer – Provide concrete framework and guideline on green bond issuance
  • For Investor – Promote information availability for green bond investment evaluation
  • With 4 main components:
    1. Use of Proceeds
      • The bond proceeds should be used on green projects, such as: renewable energy, energy efficiency, pollution control, clean transportation and so on.
    2. Process for Project Evaluation and Selection
      • Green bond issuer should advise the following information to investors:
        • Environmental sustainability objectives
        • The process of issuer determines how the project is classified as a green project
        • Any related eligibility criteria, such as exclusion criteria or process applied to identify or manage potential environmental and social risks
    3. Management of Proceeds
      • The net proceeds of green bond should be credited to a sub-account or can be tracked by the issuer in an appropriate manner
      • Suggest to engage auditor or other third party to verify the internal tracking method and fund allocation
    4. Reporting
      • Issuer should make and keep readily available and up-to-date information on the use of proceeds
      • The information should be renewed annually
  • Mobilize projects with positive environmental and climate benefits
  • Provide opportunities for potential investors to access green projects
  • Enable more capital-raising and investments to green projects
  • Promote green technology
Issuance Size: US$500 million
Tenor: 10 years (2018-2028)
Coupon Rate: 3.5%

Use of Proceeds:

  1. Renewable Energy Projects
  2. Energy Efficiency Projects
  3. Sustainable Water and Wastewater Management Projects
  4. Climate Change Adaptation Projects
  5. Green Building Projects
Issuance Size: US$310 million
Tenor: 5 years (2018-2023)
Coupon Rate: 4.75%

Use of Proceeds:

  1. Green Building Projects
    • New World Zengcheng Comprehensive Development Project
    • Qianhai CTF Finance Tower
Issuance Size: US$1.2 billion
Tenor: 10 years (2020-2030)
Coupon Rate: 1.625%

Use of Proceeds:

  1. Energy Efficiency Projects
  2. Enhance Railway Services
  3. Conserve Nature
Issuance Size: US$250 million
Tenor: 1 year (2021-2022)
Coupon Rate: 8.5%

Use of Proceeds:

  1. Green Building Projects
  2. Energy Efficiency Projects
  3. Pollution Prevention and Control
  4. Renewable Energy
  5. Environmentally Sustainable Management of Living Natural Resources and Land Use
  6. Clean Transportation
Green Bond and Green Loan Comparison
Green LoansGreen Bonds
Usually from Financial InstitutesUsually from Investor Markets
Flexible interest ratesFixed interest rates
Repay principal periodicallyRepay principal on maturity
Lenders cannot demand early repayment if loan term has not been agreedInvestors can trade their Green Bonds before maturity