Bonds May 04

Bank of Ganzhou launches more green bonds

1.5-billion-yuan (US$212 million) issue will support environmentally friendly projects in eastern Jiangxi province

Bank of Ganzhou launches more green bonds
Solar panels are seen on uncultivated land on a hill in Huangsha village in Huichang county, Ganzhou city in eastern China's Jiangxi province in August 2019. Local officials encouraged this to help rural households with little regular income and few resources. The construction of a 3-kilowatt photovoltaic power station brings an average annual generating capacity of 3,300 kilowatt-hours over its 25 years of service and annual revenue of more than 65,000 yuan per family. The villages are also developing quickly with the availability of a new energy source. Photo: Zhu haipeng / Imaginechina via AFP

(ATF) The Bank of Ganzhou has  issued a loan of 20 million yuan to Sinomach Zhijun Automobile Co Ltd to support the manufacture of new energy vehicles. This loan is the first 'green' loan issued since Ganzhou Bank issued 3 billion yuan of 'green' financial bonds.

In response to national policies and to support the development of local companies involved in industries that are beneficial to the environment, the Bank of Ganzhou last year issued 'green' financial bonds worth a total of 3-billion yuan. This was supported by the central bank, plus  banking and insurance regulatory authorities.

On April 21, Ganzhou Bank successfully issued the first phase of green financial bonds in 2020, with a scale of 1.5 billion yuan, a maturity of 3 years, and a coupon rate of 3%.

Currently, Ganzhou Bank has a batch of green loan projects with a total value of about 2.5 billion yuan. 

These are mainly investment in new energy vehicles, sewage treatment, solar power generation, recycling of waste, manufacturing of electromechanical products, agricultural products, animal husbandry and fishery or organic products. 

The bank will use these green financial bonds as an opportunity to increase 'green' credit distribution, strengthen the set-up for environmentally friendly businesses, make good use of green bonds to raise funds, and focus on investing the funds in the construction of environmental projects in Ganzhou City – to try to develop a 'green economy'.