- China’s National Development Bank (NDB) issued $1.7 billion in green bonds to fund key sustainability projects.
- The issuance saw strong demand with a 3.08 subscription multiple, highlighting investor confidence.
- Projects funded by these bonds are set to cut carbon emissions by 697,200 tonnes annually.
China’s National Development Bank (NDB) has taken another significant step in supporting sustainable finance by issuing 12 billion yuan (approximately $1.7 billion) in green financial bonds. These three-year bonds, offered at a 1.63% issuance rate, have attracted a broad spectrum of investors, both domestic and international.
With this issuance, the NDB’s cumulative total of green financial bonds now stands at 189 billion yuan. The proceeds are designated for essential projects in energy conservation, environmental protection, clean energy, and infrastructure greening.
The funded projects are expected to make a significant environmental contribution, aiming to reduce carbon dioxide emissions by approximately 697,200 tonnes and conserve 308,900 tonnes of standard coal annually. This aligns with China’s broader goals for environmental sustainability and carbon neutrality.
The green bonds attracted robust interest, resulting in a 3.08 subscription multiple. This strong demand underscores the growing confidence in sustainable finance within China and among international investors.
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Between January and May 2024, NDB issued green loans exceeding 200 billion yuan, demonstrating a loan growth rate that surpassed the bank’s overall lending expansion. This further emphasizes NDB’s role in driving green finance initiatives.
As of June 2024, the cumulative issuance of labeled green bonds in China’s domestic market reached 3.74 trillion yuan, with an outstanding scale of 2.04 trillion yuan, according to Wind, a leading financial data provider. These bonds, labeled as “green” by issuers, are crucial in directing capital towards climate and environmental projects, reflecting the increasing prioritization of sustainability in the financial sector.