Jiangsu Financial Leasing Co., Ltd.'s RMB1bn Climate Bonds Certified Green Bond launch
Jiangsu Financial Leasing Co., Ltd. successfully booked its first green bonds in April 2019. The Climate Bonds Certified issuance marks a new stage in the development of the domestic green finance sector attracting strong local investor interest.
The green issuance by Jiangsu Financial Leasing Co. Ltd is the first green bond offered in China’s onshore market that has obtained both domestic and foreign green certifications.
China Chengxin (CCX) provided Verification for the bond, which was oversubscribed by domestic and foreign investment institutions.
The use of proceeds will be in line with the “Green Bond Endorsed Project Catalogue” and the Solar Energy Sector Criteria under the Climate Bonds Standard.
World’s Largest Floating Solar Park
This is the first Climate Bonds Certified Bond to support floating solar farms on freshwater bodies. This includes the largest floating solar park in the world so far, which is located in Huainan City, Anhui Province, China.
It has a total installed capacity of 150MW and became fully operational in 2018. The solar park was developed by Three Gorges New Energy, a subsidiary of Three Gorges Corporation, which previously issued a Wind Energy related Climate Bonds Certified Bond in July 2017.
Two other solar facilities are built on land above abandoned and collapsed coal mines. One solar PV facility is built over a freshwater fishpond.
Altogether, the nominated projects amount to a total capacity of 510MW in solar PV generation.
Who’s saying what?
Shen Shuangbo, Vice President of China Chengxin Credit Management Co., Ltd. (CCX):
“Since CCX became a Climate Bonds Approved Verifier in May 2017, it has been working closely with Climate Bonds on market research and green bond Certification.”
“Climate Bonds Standard is a green bond standard widely used in the international market. CCX is the first Verifier in China to help get a domestic green bond Certified against the Climate Bonds Standard."
"The issuance of this green debt has greatly deepened the understanding of investors with green preferences on China's domestic green debts; it has also played a key role in demonstrating the financing of domestic green industry projects, which will help the long-term development of the market.”
Sean Kidney, CEO, Climate Bonds Initiative:
"This domestic green issuance from Jiangsu Financial Leasing has set a new example. It is the first green bond in China’s domestic market that is Certified by Climate Bonds, with the proceeds being used for Chinese solar assets. Congratulations to Jiangsu Financial Leasing, they are leading the way in financing domestic clean energy assets and projects."
The Last Word
Our Green Bonds State of the Market 2018 report ranks China at No.2 in the labelled green bond markets and continues to grow its green investment space.
Jiangsu Financial Leasing Co. Ltd. has adopted best practice global standards with this sucessful issuance.
We commend their efforts and look to other participants in the market to follow their example.
'Till next time,
Climate Bonds
