On May 31, 2022, the first phase of 2022 green medium-term notes (blue bonds) of China International Marine Container (Group) Co., Ltd. was successfully issued with a scale of 500 million yuan and a maturity of 3 years. The bond was certified G-1 grade by China Chengxin Green Financial Assessment (the possibility of achieving the established environmental goals is very high).
Funds raised by the bond will be used to build the first "3060" series 2,200-ton jackup wind power installation vessel by CIMC Raffles, a subsidiary of CIMC, to support offshore wind power projects in China's coastal waters and southeast Asian waters.
National Blue Bond Coupon Rates Recorded A New Low
Led by CIMC group financial management department to make overall arrangement of appraisal institutions, law firms, financial institutions to screen out CIMC strategy oriented green projects, the blue bond was recognized by innovation department of interbank dealers association and successfully issued by Agricultural Bank of China and Bank of China, CIMC’s strategic cooperation banks. This bond is the first blue bond in the Guangdong-Hong Kong-Macao Greater Bay Area in the interbank market, creating a new low record in the coupon interest rate of blue bonds in China as well as a new low record in the interest rate of medium and long-term bonds issued by CIMC in the open market.
What is blue bond? Blue bond is one type of green bond, the issuance of which should meet the requirements of green bond issuance as well as the documents such as The Green Industry Guidance Catalogue (2019 edition) issued by the seven Ministries and Commissions including the National Development and Reform Commission, Green Bond Backed Project Directory (2021 edition) released by three Ministries and Commissions including People's Bank of China, etc., in addition to which, the funds raised will should be dedicated to develop sustainable marine economy, as the bule bond plays an important role in promoting marine conservation and sustainable utilization of marine resources.
Bond experts said that the low interest rate of blue bond actually represents a kind of approval and support from the country and the industry, because generally speaking, the higher the certainty, the lower the risk of the industry and enterprises therefore the lower the interest rate of their bond issuance. The blue bond issued by CIMC not only meets the requirements of our traditional concept of "Green Economy" (zero-carbon released from offshore wind power), but also meets the requirements of the World Bank's concept of "Blue Economy" (sustainable utilization of marine resources for economic growth, improvement of people's livelihood and health of marine ecosystem).
The Funds to be Used to Build the First "3060" Series Wind Power Installation Vessel to Promote the Development of Offshore Clean Energy
It is understood that the funds raised by this bond is dedicated for use by CIMC Raffles, a subsidiary of the CIMC, to build the first "3060" series 2,200 tons jack-up wind power installation vessel to support offshore wind power projects in China's coastal waters and southeast Asian waters. The vessel is independently designed and built by CIMC Raffles, meeting the requirements of China, the Atlantic North Sea (known for harsh sea conditions) and Southeast Asian Sea, with its lifting and installation capacity easily meeting the installation requirements of 200-meter class hub height and 20-megawatt class wind turbine in the future.
(Concept drawing of CIMC Raffles’ first "3060" series 2,200 tons jack-up wind power installation vessel)
As one of the important clean energy sources in the world, offshore wind power generates significant environmental benefits. The large-scale development of offshore wind power has a decisive impact on the realization of China's "3060" carbon peaking and carbon neutrality strategy.
According to China Chengxin Green Financial Assessment Report, the to be delivered vessel could undertake the installation of 1,000 megawatt every year as per its designed capacity. Referring to the data from the National Energy Administration, the annual average utilization time of offshore wind power in China is approximately 2,500 hours, corresponding to 2.5 billion KWH to be generated through the installation work carried out by the vessel.
Considering the proportion of the fund raised by this bond in the total investment of the project, the fund raised by this bond is expected to synergistically achieve the annual carbon dioxide emission reduction of 664,300 tons, annual fossil energy replacement of 290,900 tons of standard coal, annual sulfur dioxide emission reduction of 153.85 tons, annual nitrogen oxide emission reduction of 172.12 tons and annual soot emission reduction of 30.77 tons.
Meanwhile, as there will be less work demand in short-sea areas, the offshore wind power will move to the far and deep sea in the future. As the size of offshore wind turbine and its base as well as the water depth will increase rapidly (larger wind power installation vessels are required), this large offshore wind installation vessel is of great significance to solve the technology and equipment demand gap in the offshore wind power industry, and contribute to the sustainable development of blue ocean resources and the development of blue ocean economy.
Adopting Financial Instruments for Sustainable Development
CIMC Group is the world's leading supplier of logistics equipment and energy equipment, committed to providing high quality and reliable equipment and services for the logistics and energy industry, creating sustainable value for society. The successful issuance of the first blue bond in the interbank market in the Guangdong-Hong Kong-Macao Greater Bay Area is an important step for CIMC to implement the high-quality development strategy, continuously emphasize on R&D and innovation, introduce of green and low-carbon products to the market, support the national strategy and solve the industry's shortcomings.
Entering the "14th Five-year Plan" period, the Party and the State put forward new mission and new requirements for enterprise development, and high-quality development will become the theme of China's economic and social development. CIMC will continue to shoulder the original aspiration and mission entrusted by the reform and opening-up policy, always adhere to the principle of "stable operation and quality growth", forge ahead and create new prospects, and at the same time implement the principle and concept of sustainable development in business operation. With 40 years of experience and company culture accumulation, CIMC will take the 40th anniversary as a new starting point to improve the ESG governance system, firmly advance and implement the cold chain, clean energy, rural revitalization, green mountains and waters policy to construct a new development pattern in the future and build a high quality, respected world-class enterprise.
