On January 28, 2016, ICBC successfully underwrote the first domestically issued green financial bond in the national interbank bond market. The three-year bond, with a total issue size of RMB 10 billion and a coupon rate of 2.95%, was about 2 times subscribed, marking a great success.

In underwriting the bond issue, by leveraging its professional market analyzing capability and the advantages of multi-tiered sales channels, ICBC guided the issuer to select a favorable time window for the issue, which not only reduced the costs for the issuer, but also facilitated the building of a green financial system in China.

Green financial bonds mean the negotiable securities lawfully issued by financial institutions, with proceeds raised to be used to support green industries, and the principal and interest accrued thereon paid as agreed on. In comparison with ordinary bonds, the biggest feature of such bonds is that the proceeds raised from bond issues are mainly used to support the development of green industries. In December 2015, the People’s Bank of China rolled out green financial bonds as a new product, and established a system framework by which financial institutions could issue green bonds and special support would be offered to the green bond project. In addition, the central bank also stipulated the proceeds from bond issues shall be used for green industry projects within a specified time limit, and encouraged relevant government agencies and local governments to release preferential policies and measures to support the development of green financial bonds.