Modern Land becomes first mainland developer to issue green bond
The Beijing-based homebuilder will issue US$350 million of three-year notes to fund environmentally-friendly projects
Modern Land, a Beijing-based homebuilder, has become the first mainland Chinese real estate firm to issue a green bond.
The firm announced on Friday that it has entered into an agreement in connection with the issuance of US$350 million of senior notes due 2019, at an interest rate of 6.875 per cent.
“The notes are issued as green bonds to fund existing projects of the group and businesses with environmental benefits in alignment with the green bond principles,” Zhang Peng, Modern Land’s president and executive director said in a filing to the Hong Kong bourse.
A framework designed by Modern Land, and assessed by International Climate and Environmental Research–Oslo (CICERO), sets out the projects eligible to benefit from the funding, which need to support low-carbon, climate-friendly growth.
The projects must also have a high likelihood of obtaining green building certification, and achieve additional energy saving targets of 15 per cent for new construction and 30 per cent for renovations.
Guotai Junan, Morgan Stanley and HSBC have been appointed as the joint global coordinators. They will work with UBS, VTB Capital and Zhongtai International as joint bookrunners and joint lead managers.