CTG issuses China's first carbon neutrality bonds as a non-financial firm

China Three Gorges Corporation (CTG) completed the issuance of China’s first "carbon neutrality" bonds as a non-financial enterprise on August 13.

The issuance totals 3 billion yuan, including 2 billion yuan of one-year bonds with a rate of 2.5% and 1 billion yuan of three-year bonds with a rate of 2.85%. Both products have set a record-low rate for CTG's green bonds with the same maturity.

The total tender offers for the bonds is nearly 10 billion yuan, 800 million yuan of which came from foreign institutions. The proceeds will all be used for a debt swap for the Jinsha River Wudongde and Baihetan hydropower projects.

Located on the mainstream of Jinsha River at the border of Sichuan and Yunnan provinces, Wudongde and Baihetan hydropower plants are major national projects for the implementation of the West-to-East Power Transmission Initiative.

Once fully completed and put into operation, the stations will generate an annual output of 100 billion kWh, save about 30 million tons of standard coal and reduce over 50 million tons of carbon dioxide per year.