First green corporate bond issued by certified institutions in Zhejiang

On December 5, Quzhou Traffic Investment Group Co., Ltd. successfully issued 500 million yuan of non-public green corporate bonds with a coupon rate of 4.48%, a maturity of 3% and a main credit rating of AA.

On December 5, Quzhou Traffic Investment Group Co., Ltd. successfully issued 500 million yuan of non-public green corporate bonds with a coupon rate of 4.48%, a maturity of 3% and a main credit rating of AA.

The bond is the first green corporate bond issued by a green issuers certified by a third party in Zhejiang Province, and the coupon rate of this green corporate bond with the same maturity marks the lowest of its kind.

This indicates that the comprehensive strengths of the company, such as governance, credit, business development and so on, has won the high recognition among institutional investors.

The issuance creates a new financing model for infrastructure construction and provides a reference for urban construction investment and financing enterprises across the country to break through the financing bottleneck.

The bond is issued with hydropower certified as the main green business, which is conducive to promoting the sustainable development of clean energy green projects, in line with the development goal of Quzhou Green Finance Reform and Innovation Pilot Zone.

By evaluating Quzhou Traffic’s business, environmental and social performance and corporate governance, the Green Assessment Committee of China Chengxin Interntional Credit Rating Co., Ltd. (CCXI) awarded it the green enterprise grade of Ge-1, which becomes the first third-party certified green institution in the province.

The issuance of green corporate bonds was in a good window period, and the coupon rate of the bonds was the lowest in history among bonds with the same rating of the same variety and the same maturity.

Up to now, Quzhou has registered 9.46 billion yuan of corporate bonds and issued 6.76 billion yuan, more than three times the amount issued last year, attracting funds from outside the region to boost Quzhou’s economic development through the bond market.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/05/first-green-corporate-bond-issued-by-certified-institutions-in-zhejiang/.

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