Original title: my country’s green bond issuance scale exceeded 350 billion carbon neutral bonds in the first 8 months
Recently, at the 2021 China Finance Society Green Finance Professional Committee Annual Meeting, Chen Yulu, deputy governor of the People’s Bank of China, said that by the end of the second quarter of this year, my country’s domestic and foreign currency green loan balance reached 14 trillion yuan, a year-on-year increase of 26.5%. In the first eight months of this year, my country’s green bond issuance scale exceeded 350 billion yuan, a year-on-year increase of 152%, which has surpassed the total issuance of last year, of which more than 180 billion yuan was issued for carbon neutral bonds.
Many industry insiders interviewed by reporters from 21st Century Business Herald believe that the increasing proportion of domestic green bonds in the international green bond market is related to carbon neutral bonds. Due to the new injection of carbon neutral bonds into the domestic market this year, the overall size of domestic green bonds will at least double. As the guiding role of domestic policies has become more apparent and supporting policies for various green financial products have gradually improved, my country has continued to play its role as a leader in the international green bond market.
August green bonds are dominated by medium-term notes
A research report from China Chengxin Green Gold Technology Co., Ltd. showed that the issuance volume and issuance scale of green bonds remained stable in August, with a decrease from the previous month. Data show that as of August 31, my country’s domestic green bond issuance accounted for 20.60% of the global green bond market during the same period, a year-on-year increase.
Specifically, the above-mentioned report shows that in August this year, my country’s green bond market has issued a total of 282 green bonds, with an issuance scale of 350.487 billion yuan. Specifically, 44 green bonds were issued that month with a scale of 50.325 billion yuan. The issuance volume increased by 131.58% year-on-year, and the issuance scale increased by 166.59% year-on-year; the issuance volume decreased by 2.22% month-on-month and the issuance scale decreased by 24.28% month-on-month.
Cui Zixiao, marketing director of China Chengxin Green Gold Technology (Beijing) Co., Ltd., told the 21st Century Business Herald that Cui Zixiao said that the data changes in a single month are not necessarily related to the changes in the current month, and may be affected by the previous months.
Liu Nan, a researcher at the Central University of Finance and International Research Institute of Green Finance, told a reporter from 21st Century Business Herald that the amount of green bond issuance has declined compared with the scale last month, which may be related to the low cost of capital operation in the overall credit bond market, and the coupon rate of issuance has generally declined. , The cost advantage of green bonds has been reduced and other factors are related.
Comparing different types of green bonds, in August, the number of corporate bonds and medium-term notes issued was the largest, with 13 and 12 respectively; from the perspective of the issuance scale, medium-term notes, ABN and corporate bonds were the majority, with 13.591 billion yuan and 123.87 billion yuan respectively. 100 million yuan and 8.872 billion yuan.
Cui Zixiao said that green medium-term notes have always been a relatively mainstream bond, with a maturity of 3 or 5 years, and sometimes 8 or 10 years. The maturity characteristics of green medium-term notes are more in line with the company’s medium-term financing needs, so the number of registrations in the NAFMII is relatively large.
Compared with the 12.15 billion yuan in June, the issuance scale of green ultra-short-term financing bills fell sharply in August to only 1 billion yuan. Cui Zixiao said that different industries and companies have experienced changes in financing demand in the short term, causing fluctuations in green ultra-short-term financing bonds. This type of bonds has short maturity and low risk, and the issuing company has a high level of qualifications. It often does not require debt rating when issuing, and directly refers to the subject’s rating.
In terms of issuance venues, 29 green bonds were issued on the inter-bank market in August, with a scale of 39.178 billion yuan, and 15 on the exchange market with a scale of 11.147 billion yuan. The gap between the two markets is narrowing.
Liu Nan believes that the bond issuance venue is affected by the overall issuance cost of the capital market on the one hand, and the policy environment of the regulatory venue on the other hand. In the first half of the year, due to the introduction of carbon neutral bonds in the inter-bank market, more issuers chose the inter-bank market to issue carbon neutral bonds. In the second half of the year, exchanges included carbon neutral bonds in innovative bonds, which caused some issuers to turn to exchanges. .
Carbon neutral bonds account for 45% of green bond issuance
According to the above report data, 21 new carbon neutral bonds were issued in August, with a scale of 25.65 billion yuan. As of the end of August, the cumulative issuance of carbon neutral bonds was 127, with a scale of 174.192 billion yuan, accounting for 45.04% of the total green bond market issuance and 45.70% of the issuance scale. Since May, the issuance volume and scale have maintained a steady increase. Cui Zixiao said that carbon neutral bonds are expected to maintain growth at the end of the year.
According to the “China Monetary Policy Implementation Report for the Second Quarter of 2021” issued by the Central Bank, carbon-neutral special financial bonds and carbon-neutral debt financing instruments will be created in the inter-bank market to support projects with significant carbon emission reduction effects.
Liu Nan said that the proposal of this content can effectively encourage banking financial institutions to participate in the construction of the carbon-neutral financial bond market and guide more funds to support the construction and operation of low-carbon projects. It is possible to further clarify and improve the carbon-neutral financial bond standards and the information disclosure mechanism for carbon-neutral financial bonds, strengthen the management of the use of funds raised by carbon-neutral bonds, and manage the environmental and social risks of carbon-neutral bonds, so as to improve the management of carbon-neutral special financial bonds System to promote the strict and standardized development of carbon-neutral financial bonds.
(Author: Li Deshangyu, Dai Haoran, Editor: Zeng Fang)