China saw successful auction of the first batch of green bonds on Wednesday. The Shanghai Pudong Development Bank issued 20 billion yuan worth of 3-year green bonds on the inter-bank market at an annualized yield of 2.95 percent.
Guotai Junan Securities served as the leading underwriter and bookrunner, and China International Capital Corporation, Huatai Securities and Haitong Securities served as co-underwriters. Market players disclosed that the subscription ratio reached over two times the volume offered.
The People's Bank of China (PBOC), China's central bank, unveiled a mechanism framework on green bond issue in December 2015.
Liu Xinyi, president of the Shanghai Pudong Development Bank, noted that the bank had designed and optimized a package of proposals on green bond issue. When getting the raised funds, it would first select those major livelihood projects related to smog easing, pollution prevention, resource saving and cyclic utilization.
In addition, Industrial Bank announced on January 21 that it was given approval to issue no more than 50 billion yuan worth of green bonds on the inter-bank market, with raised funds used in the lending of green industrial projects.
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