(ATF) The Agricultural Development Bank of China successfully issued a three-year “two mountain” environmental-themed bond for global investors through an open tender at the Shanghai Clearing House on April 21.
The bond issue totals 2 billion yuan and has an interest rate is 1.649%, 21 basis points lower than the previous day’s yield level, and the subscription rate is 10.03 times.
The issuance was taken up by Beijing Rural Commercial Bank, China Everbright Bank, Pudong Development Bank, Tianjin Bank, Guangdong Nanhai Rural Commercial Bank, Dalian Bank, Huishang Bank, Wanlian Securities, CICC, China Development Bank, First Venture Securities, CITIC Securities, and others, with Institutional support.
At the same time, the Agricultural Development Bank issued 4-billion yuan of two-year industrial poverty-alleviation bonds. The Two Mountains theme comes from a speech by the Chinese leader, which obviously inspired the name.
Up to now, the Agricultural Development Bank has formed a pattern of green financial products of considerable scale.
By the end of the first quarter of this year, the green credit balance nationally reached 659 billion yuan, mainly involving ecological and environmental projects, energy conservation and environmental protection, green infrastructure upgrades, and the cleaning industry, in addition to issuing various bonds with a ‘green’ theme – for certified special ‘eco’ projects at home and abroad.
The total domestic and foreign-currency bonds held by the bank is about 76 billion yuan.
It can be assumed that China wants to reduce pollution levels and the current leader is emphasising this, as the bank points out at some length.
The bank said: “Two mountains is a concept of ‘green water and green mountains’. It is the golden mountain and silver mountain, it is an important connotation of Xi Jinping’s ecological civilization target and an important part of the new development concepts from the central government.
“It has become the consensus of action of the entire party and society and has achieved tremendous practical results.
“The issuing of ‘Two Mountain’ bonds is an important measure by the Agricultural Development Bank to further implement the ‘Two Mountain’ concept at a time when the national epidemic prevention and control situation continues to improve and the resumption of production and production continues.
“The funds raised will mainly be used to support General Secretary Xi Jinping, who recently emphasised key areas related to the construction of an ecological civilization that includes ecological protection and restoration, conservation and utilization of water resources, with water management in key river basins, urban and rural environmental management and prevention of pollution.”
In the recent past, the bank said General Secretary Xi Jinping, while directing the entire party and the country to do a good job in preventing and controlling the epidemic, plus economic and social development, had not forgotten to make arrangements for the construction of an ecological civilization, stressing the need to further implement the concept of “Green water, green mountains and golden mountains”.