A "Ring the Bell" ceremony was celebrated today in Luxembourg, as CIB will next week list its first international green bond on LuxSE, a platform limited to sustainable securities of highest transparency levels.
The Industrial Bank (CIB) has a long-standing commitment to sustainability – in 2007, the bank signed the Equator Principles, commonly known as the International Finance Corporation (IFC) Performance Standards on social and environmental sustainability, thus becoming the first Chinese bank to do so. After a decade of supporting sustainable projects, the bank, calling itself the Green Bank, issued its first international green bond.
The €300 million green bond will list on LuxSE’s Euro MTF market. Raised proceeds will finance, in particular, projects related to electric transportation, solar and wind energy generation and sustainable water and waste water. Cicero has verified the issuance and rated it as Dark Green, the highest note for a green instrument. The bond’s framework is designed to align with ICMA’s 2018 Green Bond Principles and the People’s Bank of China’s Green Bond Catalogue and the bond has been awarded a Climate Bonds Initiative certification.
“By adopting Equator Principles, developing green finance and using advanced finance technologies to manage environment and social risks, we not only bring considerable economic benefit to the bank, but also contribute to the “China dream” for a better future and a greater Earth”, commented Tao Yiping, President of the Industrial Bank.
CIB had granted green financing in excess of RMB 1.5 trillion to more than 14,000 corporates. The bank estimates that each year supported projects save 29 million tons of coal equivalents and reduce carbon dioxide production by over 83 million tons, equal to shutting down 192 thermal power plants of 100MW or stopping the running of 100,000 taxis for 40 years.