Biggest issuer - bank: Bank of Beijing

Channels: Green Bonds

Companies: Bank of Beijing, The Agricultural Bank of China, China Securities, CITIC Securities, Huaxin Securities, Industrial and Commercial Bank of China, Morgan Stanley, CITIC Securities, China Construction Bank, China Central Depository & Clearing, Climate Bonds Initiative, HSBC

Two chunky deals from the Bank of Beijing made it the biggest bank issuer of green bonds last year. 

 

The Chinese bank raised a total of RMB 30 billion ($4.8 billion) in 2017 through two RMB 15 billion green bonds.

Its first deal came in April, and was the largest green transaction from a Chinese issuer at the time of the issue. The green bond had two tranches, maturing in April 2020 and April 2022.

The Agricultural Bank of China, China Securities, CITIC Securities, Huaxin Securities, Industrial and Commercial Bank of China and Morgan Stanley were lead managers for the deal. EY provided a second opinion on the environmental attributes of the transaction.

Proceeds from the bond will be used to finance three green projects - efficiency upgrading and reconstruction of a sewage plant, construction of a municipal solid waste incineration power plant, and construction of a wind farm.

Its second bond of the year settled on 28 November 2017 and will mature three years later. It carries a coupon of 4.9%.

CITIC Securities, China Construction Bank, Huaxin Securities and Industrial and Commercial Bank of China acted as lead managers of this transaction.

With these two issues, Bank of Beijing made a significant contribution to the overall growth of the Chinese bond market, analysts said.

According to a joint analysis by China Central Depository & Clearing (CCDC) and the Climate Bonds Initiative (CBI), which was supported by HSBC, China issued $37.1 billion in green bonds last year, a 4.5% increase from the record-breaking 2016.