The first batch of transformation bonds landed!

On June 23, it was learned from the National Association of Financial Market Institutional Investors that the first batch of transition bonds were successfully issued on June 22 to support the green and low-carbon transition of five companies
.
The five companies are Huaneng International Power Co.
, Ltd.
, Datang International Power Generation Co.
, Ltd.
, Aluminum Corporation of China, Shandong Iron and Steel Group Co.
, Ltd.
, and Wanhua Chemical Group Co.
,
Ltd.

Transition bonds refer to debt financing instruments that raise funds specifically for low-carbon transition in order to support adaptation to environmental improvement and address climate change
.
Transition bonds are a useful supplement to green finance and a sub-category of sustainable finance.
They are of great significance in guiding the allocation of financial resources to green areas and supporting the low-carbon transformation and development of traditional industries
.

Wanhua Chemical Group Co.
, Ltd.
is led by ICBC, with an amount of 200 million yuan and a term of 2 years
.
The raised funds will be used for the integration of the polyurethane industry chain - the ethylene project
.
This project is the first set of pure propane feed cracker in China
.
The energy consumption per unit of ethylene product and the energy consumption per unit of diene product of the ethylene plant of the project are respectively higher than the industry energy efficiency benchmark level and the industry advanced value
.

Shandong ICBC helps green and low-carbon development

On June 22, the 2022 first tranche of medium-term notes (transformation + science and technology innovation) of Wanhua Chemical Group Co.
, Ltd.
, which was exclusively underwritten by Shandong ICBC, was successfully issued
.
This bond is the first batch of transition bonds in China's inter-bank market, and it is also the first bond in the inter-bank market that has the attribute of "scientific and technological innovation" in "transformation", realizing the deep integration of "low-carbon transition" and "scientific and technological innovation"
.
The bond issuance amounted to 200 million yuan, with a term of 2 years and a coupon rate of 2.
38%.
Financial support for green and low-carbon transformation and technological innovation has played a good demonstration effect
.

Wanhua Chemical Group Co.
, Ltd.
, as a leader in green development and technological innovation in the chemical industry, is a new chemical material company operating globally.
Its business covers polyurethane, petrochemical, and fine chemical industry clusters.
It has won national innovation honors for many times.
It is the only company in China with independent intellectual property rights of MDI core manufacturing technology
.
It is understood that all the funds raised from the bond will be used to support Wanhua Chemical Group's "Polyurethane Industry Chain Integration - Ethylene" project, which innovatively adopts the light hydrocarbon cracking route to produce ethylene, which is the first set of pure propane feed in China.
The cracking unit reduces the energy consumption and carbon emissions in the production process through the lightening of raw materials, the use of high-efficiency cracking furnaces and the application of heat pump technology, and has good carbon emission reduction benefits, which is beneficial to alleviating global temperature rise and protecting biodiversity.
Sex has a positive effect
.