China Development Bank (CDB), a state-owned policy bank, said Tuesday [5 September 2017] that it will issue green bonds to raise funds for water resource protection along the Yangtze River Economic Belt. The bank said it will issue no more than 5 billion yuan (about 763.2 million U.S. dollars) in three-year green bonds next Tuesday, with no more than 4.4 billion yuan in bonds to be issued in the inter-bank bond market…Full Article: Sept 2017

Key Point

  • CDB’s green bonds [i.e. tax-exempt bonds used for the amelioration of brownfield sites] will be used raise money for three water protection and treatment projects in Hubei Province. An environmental protection project on the Hanjiang [aka Hanshui] River in Xiangyang, Hubei Province, will also be included.
  • From January to September 2017, the CDB has issued CNY 15 billion [~USD 2.25 billion] worth of green bonds in China’s inter-bank bond market for air pollution control and development of the Beijing-Tianjin-Hebei region.
  • In 2016, according to Moody’s, China accounted for almost 40% of new green bonds issuances, followed by the USA, France and Germany, During that year, global green bond issuances totaled a record high of USD 93.4 billion.

ChinaAg Comments

  • In November 2016, the Xianda (Tianjin) Seawater Resources Development Company announced it would construct a desalination facility. The desalination project is part of the Nangang Industrial Zone (launched in 2014) in Tianjin. The industrial zone itself is part of the Beijing-Tianjin-Hebei collaborative development strategy. In addition to water, the desalination plant with also produce salts and chemicals.
  • In June 2016, China Development Bank (CDB) signed an agreement with Belarusbank to finance a USD 1.4 billion potash project in Belarus. The new factory will reportedly have annual production capacity of 2 million MTs of potassium chloride.
  • In April 2015, Beijing, Tianjin, and Hebei signed the “Agricultural Cooperative Development Framework Agreement”. The agreement to improve and develop the agricultural sector within the three regions. In addition, they agree to work together on formulating an international export and marketing strategy.
  • In March 2013, COFCO announced that it received $4.82 billion in loans from the China Development Bank (CDB) in order to stabilize food prices and improve productivity.
  • In 2012, Boyu Capital, China Investment Corp. (CIC), Citic Capital and China Development Bank bought a 5.6% stake in Alibaba, an e-commerce platform.
  • Founded in 1994 and headquartered in Beijing, the China Development Bank (CDB) is a state-owned financial institution whose top shareholders (as of mid-2017) include China’s Ministry of Finance, Central Huijin Investment, Buttonwood Investment Holding, and the National Council for Social Security Fund.

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