On six core issues green bonds

Polaris solar PV net news: China on global climate change, energy conservation and emission reduction issues importance of increasing green industrial policy spring constant. In the “Thirteen-Five” plan under the overall layout, green ideas become the keynote of the next five-year development, climate summit in Paris also made green development commitments and clear long-term objectives. Developing green bond markets for the promotion of traditional industry structure upgrading and transformation, developing new green industries is important; but green industries also face financing tight, higher financing costs of the current situation, as new financial instruments to support financing of green industry and green bond development in China to solve the financing difficulty bring a ray of green industry.

Q1 What is the Green bonds?

A: Green bond refers to the raised funds are designed to meet the required conditions of green projects for these projects or refinance debt instruments, the main objective is to promote the sustainable development of the environment. Green projects include but are not limited to: energy saving, resource saving and recycling, pollution control, clean transportation, ecological protection and adaptation to climate change, clean energy and other fields.

Q2 green bond background and current situation of development situation?

A,: Green bonds of rise stems from investors on climate changes and environment problem of continued concern, first by European investment banking (EIB) Yu 2007 first issued, 2012 years Qian green bonds issued subject more to international multilateral financial institutions mainly, 2013 yilai with first only non-financial enterprise green bonds of issued, green bonds market scale quickly expanded, thereafter local government and low rating subject gradually into green bonds market, issued subject constantly expansion, green bonds varieties further rich, Global Green bond market growth, 2015 global bonds issued 232 green bond market, issuance of US $ 41.8 billion.

Judging from the domestic market green bonds started relatively late, but is currently in the stage of rapid development. 2015, the ABC Green $ 1 billion dual currency bonds issued in London, Shanghai Pudong Development Bank, Industrial Bank and the green banks of the issued 38 billion yuan of financial bonds. April 2016, the Concord wind power issued 200 million yuan in the interbank market medium-term notes, complete the first green debt financing of non-financial corporations in the territory tool registration issue.

Who can issue Green bonds Q3?

A: issuance of green bonds mainly follow the principles of project-oriented, not special demands on the qualification of the issuer, the scope of green projects should conform to the Chinese Finance Association professional Committee of green finance publication of the catalogue of green bonds support projects. In inter-bank bond market, according to the people’s bank notice of the issuance of green bonds, green finance issuers, including development banks, policy banks, commercial banks, finance companies and other financial institutions established by law. According to the national development and Reform Commission guidelines on green bonds, encouraged listed companies and their subsidiaries to issue Green bonds support eligible enterprises, green investment funds issuance of green bonds, earmarked for investing in green projects. According to the SSE of the notifications on the pilot green corporate bonds, the issuer is not limited, guided by the management of corporate bonds, raising funds to support the green industry Publisher can apply.

Q4 issuers: why do I have to issue Green bonds?

A: from a guidance policy, issuance of green bonds with multiple offers and convenience. (1) issue. Green bond issue Declaration, established or declared admissible and examine the green channel or incorporated into “speed up and simplify the audit classes”, and allowed green bonds to institutional investors in a public offering. (2) preferential policies. Currently provides green bonds to raise money can be relaxed to 80% per cent total investment to raise funds to repay Bank loans and supplement working capital ratio raised to 50%; it has approved Green Project Green bonds, and meets the conditions for investment, special construction funds in the central budget support, special construction funds will be given priority support. With the development of green bonds, is expected to introduce more appropriate policies at the national level in the future to support measures to encourage green bonds.

Q5 investor: why should I invest in green bonds?

A: in the foreign market, issuance of green bonds is often beyond offering, be the object of institutional investors. In China, green bonds also has must investment value: (1) investment green bonds has became global range within institutions investors of consensus, investment of environment benefits became judge institutions of important standard one of, capital began influx new energy, and energy-saving technology, green industry; (2) national on green industry support efforts great, future Government related sector is expected to introduced offers policy support green bonds development, green bonds returns rate level reasonable, has must of configuration value.

Underwriters Q6: how should the guidance issuance of green bonds by the issuer?

A,: in general bonds of issued process zhiwai, focus concern green bonds issued people in project assessment and filter and raised funds using and management aspects of normative, which, project assessment and filter link main according to green bonds support project directory, reference professional environment assessment institutions and third party certification institutions of assessment certification views, counselling investors filter out meet related standard of green project or intends voted project pool; addition, underwriting business also needed help issued people perfect its in project assessment and filter process, and raised funds management , Information disclosure and other aspects of construction funds for issuers for continuous supervision and information disclosure.

Original title: on six core issues green bonds

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