Chinese green bond issuance up 14% in H1

Green bond issuance from China reached USD 13 billion (EUR 11.1bn) in the first half (H1) of 2018, up by 14% from a year earlier, and a large portion of that is going for renewable energy.

The total issuance that meets international definitions stands at USD 9.29 billion, according to the Climate Bonds Initiative’s China Green Bond Market Mid-Year Report. Of the total proceeds, USD 3.4 billion or 36% will be allocated to renewable energy, including wind and solar projects.

Low-carbon transport is next with a 30% share of proceeds.

In the period, financial corporates’ issuance were responsible for 44% of the USD 13 billion of green bonds. Industrial and Commercial Bank of China (ICBC) and Bank of China are the largest issuers in that category. The Climate Bonds Initiative noted that ICBC (London)'s Certified Climate Bonds are backed by a number of onshore wind and solar parks in China and in Pakistan, and also by the 588-MW Beatrice offshore wind farm in Scotland.

Non-financial corporates accounted for 32% of the H1 total. This list includes repeat issuers such as CGN Wind and Century Concord Wind Power and debut green bonds by Suntien Green Energy, wind turbine maker Envision Energy and Ming Yang Smart Energy, the proceeds of which will support wind projects or turbine manufacturing.

The full report is available at https://www.climatebonds.net/files/files/China%202018%20H1%20Report_EN%20final%281%29.pdf.

(USD 1 = EUR 0.85)

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