Beibu Gulf Bank releases carbon neutral bonds

On July 11, Guangxi Beibu Gulf Bank issued the first carbon neutral-themed green financial bond for city commercial banks in the country in the inter-bank bond market, specifically supporting the construction of green projects with significant carbon emission reduction benefits.

This is an important innovative measure for the bank to implement the concept of green and sustainable development, as well as contributes to the country's dual carbon strategy of reaching carbon peak by 2030 and achieving carbon neutrality by 2060.

The main body and debt rating of this bond are AAA. The issuance amount is 1 billion yuan ($148 million), the interest rate is 2.98 percent, and the full subscription multiple is 3.16 times.

Bond investors cover national joint-stock banks, city commercial banks, rural commercial banks, and other banking institutions, as well as non-bank institutions like fund companies and trust companies, all of which are investment institutions outside Guangxi.

After the issuance of the bonds, it is expected to achieve an annual reduction of 217,500 metric tons of carbon dioxide, 105,800 tons of standard coal, 55.52 tons of SO2, 62.11 tons of NOx, as well as 11.10 tons of smoke and dust, achieving significant carbon reduction.

Guangxi Beibu Gulf Bank also issued the second phase of green financial bonds in 2022, with an issuance amount of 1 billion yuan, an interest rate of 3.03 percent, and a full subscription multiple of 3.02 times. After the successful issuance of this bond, Guangxi Beibu Gulf Bank's scale of green financial bonds reached 9 billion yuan.

Beibu Gulf Bank releases carbon neutral bonds on July 11. [Photo/WeChat account: gh_df8bc987e060]