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HBIS Issuing China’s First Green Renewable Corporate Bonds

HBIS successfully issued the country’s first green renewable corporate bonds in 2018, which was then the first such bond ever issued by a Chinese steel mill.

The capital has recognized the accomplishments of HBIS in upgrading the industry and its approach of“Green Steel Manufacturing for Human Civilization”. HBIS green development concept closely follows both the national green development policy and the idea of the green corporate bonds. According to the NDRC December 31, 2015 Guidance of Green Bonds, the issuance of green bond was dedicated to retrofit of key energy conservation and emission reduction projects, clean energy and recycling projects, water recycling projects and unconventional development of water resource projects, pollution reduction projects, 12 types of projects in total. HBIS is also investing heavily in all those fields.  

The “NDRC Hebei Province HBIS Issuing Green Renewable Bond Approval”authorizes HBIS to issue green renewable bonds to raise 3.5billion Yuan with two types of bounds. Type 1 will raise 920million Yuan, which 460 million will be used in project construction and the rest of 460million will the capital for project operation. Type two will raise 2.58billion Yuan in which 1.29billion will be used in project construction and the further 1.29billion will cover project operation costs. The first bond interest rates will be recalculated in a four-year cycle and the type 2 bond interest rates will be recalculated in a five-year cycle while having the choices of whether to renew the bonds. By the end of 2018, HBIS issued the type 1 bond and raised 920million Yuan, with the time of 4+N Years, rating AAA/AAA, contract interest rate 5.8%, which was 70bmps lower than similar bonds.       

The 920billion Yuan debt will be invested to support dust control projects (high efficiency retrofit projects and dust reduction management upgrade and retrofit projects). No.1 Sinter new desulfurization project, HBIS Hansteel Recycled water and concentrated brine solution high level processing project and 70MW fuel gas composite power generation project. The projects will improve the green production of HBIS and increase the profits, efficiency, reduce the costs and reduce the emission and making a better showpiece green production steel mill.