PBOC’s Chongqing unit promotes the issuance of green bond innovative products

On September 16, Chongqing Rail Transit (Group) Co.,Ltd. successfully registered the first green medium-term note in central and western China, which is worth 5 billion yuan and does not correspond to specific green projects, with the green certification of deep green (G-AAA) level and a term of 5 years. The raised funds are used to repay loans of financial institutions and supplement working capi

On September 16, Chongqing Rail Transit (Group) Co.,Ltd. successfully registered the first green medium-term note in central and western China, which is worth 5 billion yuan and does not correspond to specific green projects, with the green certification of deep green (G-AAA) level and a term of 5 years. The raised funds are used to repay loans of financial institutions and supplement working capital.

According to a person-in-charge of Chongqing Branch of Bank of China, the main underwriter of the bill, on September 18, the first phase of the bill was successfully issued with an interest rate of 4.09%, which is 0.57 percentage points lower than the average issue interest rate of medium-term bills of local state-owned enterprises in September.

The successful issuance of the notes is of great significance to expand the use of green debt financing tools and to give full play to the role of inter-bank bond market in supporting Chongqing’s green development.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/07/pbocs-chongqing-unit-promotes-the-issuance-of-green-bond-innovative-products/.

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