A reporter from the Securities Times learned that Agricultural Bank Of China recently issued 20 billion yuan of green financial bonds in the interbank market, of which 15 billion yuan for three years, with an issue interest rate of 2.40 percent, and a five-year 5 billion yuan, with an issue interest rate of 2.80 percent, with an average subscription multiple of 2.5 times. attracted nearly 150 institutions to participate, the market subscribed enthusiastically.
The funds raised by this issue of bonds will all be used for the construction of rail transit and other infrastructure green upgrading projects to provide high-quality services for the development of the real economy. Agricultural Bank Of China said that considering the long construction period of the project, the current bond is issued in the form of two varieties of three-year and five-year bonds, of which the interest rate of five-year variety issuance has hit a new low in the market.
It is understood that the green credit projects linked to the funds raised by the bonds in this issue not only meet the "China Green Bond principles", but also mark the newly released China-EU "Common Classification of Sustainable Finance (updated version)". It is the largest green financial bond issue under this catalogue.
Agricultural Bank Of China said that the issuance of green financial bonds will help to actively promote the application of China's leading international sustainable standards and reduce the cost of green certification for cross-border transactions, thus helping global investors to participate in China's green and low-carbon development. The current issue of the bond is in line with the International Capital Markets Association's Green Bond principles and has been certified by the Climate Bond Initiative Climate Bond Standard 3.0.
As of the end of September 2022, the balance of green credit business exceeded 2.5 trillion yuan. Agricultural Bank Of China said that in the future, he will continue to increase financial support for green and low-carbon areas and inject financial "living water" into the development of green industries and enterprises.