Qinghai issues the China’s first forestry ecological bond by a local government

Recently, the first forestry ecological special bond by a local government in China was successfully issued by the Qinghai provincial government on the Shanghai Stock Exchange, marking the opening up of new investment and financing channels for the construction of forestry ecological projects in the province.

Recently, the first forestry ecological special bond by a local government in China was successfully issued by the Qinghai provincial government on the Shanghai Stock Exchange, marking the opening up of new investment and financing channels for the construction of forestry ecological projects in the province.

It is said to be of great significance in the ecological protection construction of the whole province and even the whole country.

The amount of this tranche of the bonds issued is 100 million yuan, with a maturity of seven years, with 3.44 percent of the benchmark interest rate for local government bonds, according to Zhao Haiping, director of the Planning and Finance Department of Qinghai Forestry and Grassland Administration.

The repayment of principal and interest occurred comes from the income of the project, and the debt risk is also checked within the project, and the project information is disclosed to investors in time in accordance with market rules.

It is understood that the bond will focus on the construction of large-scale managed woodlot in Huangshui, Qinghai Province.

In 2018, the construction of the large-scale managed woodlot in the Huangshui River Basin in Qinghai Province was enlisted into the national pilot project.

Different from other projects that rely on state financial investment, the pilot project of Huangshui large-scale woodlot is a social financing project with innovative mechanism and system.

“The total investment is expected to be 9.912 billion yuan, and there is a large funding gap, so there is an urgent need for local governements to change their ideas and take the initiative,” Zhao said in the report.

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/qinghai-issues-the-chinas-first-forestry-ecological-bond-by-a-local-government/.

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