China Three Gorges issues $2.98b of green bonds

The proceeds will be used to finance the construction of large hydropower projects.

State-owned power firm China Three Gorges Corporation (CTG) has issued $2.98b (RMB20b) green exchangeable bonds, according to an announcement by the China Electricity Council (CEC).

It is said to be the first and largest green exchangeable bond in China's capital markets. The bond issuance aims to maintain and increase the value of state-owned assets by revitalising the stock assets.

The price of the bond was reportedly set on 3 April, and the proceeds were wired to its bank account on 11 April.

The proceeds will be used to finance the construction of large hydropower projects. This is the first time that the CTG used a financial instrument with a combo of debt and stock.

“The issuance was in line with the call by the top state-owned assets regulator Assets Supervision and Administration Commission to reduce corporate leverage and debt, and is also a move to develop the green finance advocated by the CPC Central Committee and the State Council,” CEC said.