China’s green bond issuance totaled 143.9 billion yuan in first half 2019

In the first half of 2019, Chinese issuers issued a total of 143.9 billion yuan ($21.8 billion) of green bonds, an increase of 62 per cent over the same period last year.
Of these, 49% of the total issuance meets the international definition of green bonds.

In the first half of 2019, Chinese issuers issued a total of 143.9 billion yuan ($21.8 billion) of green bonds, an increase of 62 per cent over the same period last year.

Of these, 49% of the total issuance meets the international definition of green bonds.

A total of 143.9 billion yuan ($21.8 billion) of green bonds were issued by Chinese issuers in the first half of 2019, up 62 per cent from a year earlier, according to the China Green Bond Market 2019 report released by Chinabond.com.cn on 2August.

Globally, the total amount of green bond issuance that meets the international definition reached $117.8 billion in the first half of this year, an increase of 48 per cent over the same period last year.

Green bonds are designed to finance projects that address climate change and can be issued by governments, banks, municipal agencies or companies.

Data show that in 2018, China’s green bond issuance exceeded 30 billion US dollars, and the proportion of bonds in line with the international definition of green bonds gradually increased.

The report also shows that low-carbon transportation is the largest category for fund-raising purposes, accounting for 37% of the total circulation in the first half of the year.

This was followed by renewable energy (26 per cent) and water (20 per cent).

In addition, financial companies remain the largest type of issuers, accounting for 41 per cent of total issuance in the first half of the year.

The report also points out that green bond issuance has obvious regional characteristics. Issuance in East China (led by Jiangsu, Jiangxi and Zhejiang) and central North China (led by Shandong, Beijing and Hebei), as well as Guangdong and Sichuan provinces is dominant. Among them, Guangdong Province, Shandong Province and Jiangsu Province ranked in the top three, with US $1.8 billion, US $800m and US $700m respectively.

It is worth noting that previous data from the Securities Association of China showed that the underwriting of green corporate bonds in the first half of this year exceeded the level of the same period last year.

In the first half of 2019, 23 securities companies, as lead underwriters of green corporate bonds or managers of green asset securitization products (Shanghai and Shenzhen stock exchanges), underwrote and issued 21 products with a total amount of 51.743 billion yuan, including 8 asset securitization products with the total amount of 10.029 billion yuan.

In the first half of 2018, 10 securities companies, as lead underwriters of green bonds or managers of green asset securitization products (Shanghai and Shenzhen stock exchanges), underwrote and issued 9 products, totaling 5.806 billion yuan, including 2 asset securitization products totaling 1.285 billion yuan.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/08/china-s-green-bond-issuance-totaled-143-9-billion-yuan-in-first-half-2019/.

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