On November 12, 2019, with the support of China Central Depository & Clearing Co., Ltd. (CCDC), China Development Bank (CDB) issued a three-year sustainable development green financial bond to global investors by means of public bidding, with an interest rate of 3.1% and a bid-to-cover ratio of 3.76.
The bonds are the first green bonds of China Development Bank in 2019, certified by Ernst & Young, in line with the principles of green bonds and social bonds. The issuance covers the inter-bank bond market and thecommercial bank over-the-counter (OTC) market.
All the funds raised will be used for the Yangtze River protection and green development projects. It includes forestry ecological construction and national reserve forests in Chongqing to better serve the protection of the Yangtze River and the high-quality development of the Yangtze River economic zone.
In recent years, the CCDC has actively helped CDB to issue green bonds. Since 2017, it has supported CDB in issuing different green bonds on plans such as "Prevention and Control of Air pollution", " Beijing-Tianjin-Hebei integration plan", "Green Circular Development", "Water Resources Protection of the Yangtze River Economic Zone" and "Guangdong-Hong Kong-Macau Greater Bay Area Clean Transportation Construction", all of which total 25 billion yuan.
As an important national financial infrastructure, the CCDC has actively promoted that the green financial should serve real economy under the guidance of the competent authorities. By the end of October 2019, active financial institutions and enterprises had issued more than 500 billion yuan of green bonds.
In addition, the CCDC has compiled and issued China's first green bond index since 2016.
Among them, the ChinaBond China Climate-Aligned Bond Index, which the company compiled in cooperation with the Climate Bonds Initiative (CBI) and CECEP Consulting Co., Ltd., is the world's first climate-related bond index, and was awarded the world's first non-labelled green bond index certificate issued by CBI in March 2017.
In September 2018, ChinaBond China Climate-Aligned Bond Index,ChinaBond China Green Bond Select Index, and ChinaBond China Green Bond Index,were listed on the Luxembourg Stock Exchange, showing the achievements of China's green finance achievements to the international market. It has further expanded the openness of China's green bond market to the outside world and enhanced its international influence.
This issuance of CDB's green bonds will also be included in the ChinaBond China Climate-Aligned Bond Index, ChinaBond China Green Bond Select Index.