Shanghai Clearing House (SHCH) assisted China Development Bank (CDB) to issue the first carbon neutrality-themed green financial bond to global investors by public bidding, as reported by Sina Finance on March 18. The scale of this issuance is RMB19.2bn with a maturity of three years and an interest rate of 3.07%, and the subscription multiple reached 8.19. At the same time, SHCH launched China’s first carbon neutrality bond index, which can reflect the overall price trend and market development of carbon neutrality bonds in a timely and accurate manner. Moreover, the index will provide high-quality carbon neutrality bond indexed investment targets for domestic and foreign investors, and promote financial resources to invest in low-carbon projects.

National Association of Financial Market Institutional Investors (NAFMII) issued a notice to clarify the relevant mechanisms for carbon neutrality bonds, which refer to debt financing instruments that are specially used for green projects with carbon emission reduction benefits. In addition to exploring the issuance of carbon neutrality asset-backed securitization products and green bonds, banks are further expanding the scope of green credit services in accordance with relevant national policies. In recent years, China’s green finance has achieved remarkable results that the types of products have included green credits, green bonds, green insurance, green indexes, green funds, etc. According to the data of the Chinese central bank, as of the end of 2020, China’s green loan balance is nearly RMB12tr, topping worldwide, and the stock of green bonds is RMB813.2bn, ranking second in the world.

Sources:

https://finance.sina.com.cn/money/bond/market/2021-03-19/doc-ikkntiam5032066.shtml

https://baijiahao.baidu.com/s?id=1694639515833654311&wfr=spider&for=pc

https://baijiahao.baidu.com/s?id=1694621395274674198&wfr=spider&for=pc