Bank of Qingdao Issues $1.2 Billion Green Bonds

Chinese banks are making a beeline for issuing green bonds after the country’s central bank allowed banks and financial institutions to do so last year.

Bank of Qingdao recently announced at a press conference that is launching a green bonds issue worth 8 billion yuan (over US$1.2 billion). The press release issued by the bank did not give further details of the bond issue.

Proceeds from the bonds issue will be used to finance 26 projects already shortlisted by the bank. These include projects aimed at energy conservation, pollution control, clean transportation, adaptation, industrial energy efficiency, and environmental protection.

Recently, the Industrial & Commercial Bank of China (ICBC) also announced plans to launch green bonds. Officials of the bank have, however, did not announce the possible size or timing of the green bonds issue.

The Chinese central bank has set a quota system for banks and financial institutions to raise up to 300 billion yuan (over $45 billion).

Chinese companies and banks issued around $1 billion worth of green bonds in 2015 and this figure is expected to balloon tremendously this year.