CYPC Successfully Issued China’s First Batch of Sustainability-Linked Bonds

On May 10, China Yangtze Power Co., Ltd. ("CYPC" for short) successfully issued China’s first batch of sustainability-linked bonds (SLBs) in the inter-bank bond market, which responded to the major decision and deployment of “peaking carbon dioxide emissions before 2030 and achieving carbon neutrality before 2060”, as well as the concept of green and sustainable development. The amount of bonds issued was RMB 1 billion with a maturity of 3 years and a coupon rate of 3.40%. The subscription rate around the issuing market was 4.13 times, indicating that the Company's good credit standing had gain high recognition.

　　SLB is an innovative green financing product launched by the National Association of Financial Market Institutional Investors (NAFMII) on April 28, 2021. As a debt financing tool that links bond covenants with the issuer's sustainability goals, this product inspires the issuer to formulate and fulfill sustainability goals through the design of bond structures, so as to rejuvenate the bond market and encourage the issuer to contribute to sustainability via a market-oriented constraining mechanism.

　　By virtue of its leading status in the hydropower industry and excellent credit standing, CYPC was selected by NAFMII among the first batch of issuers of SLBs. By issuing the first batch of sustainable SLBs, CYPC set a goal on sustainable development - "ensure the installed capacity of renewable energy will be no less than 71,000 MW by the end of 2023", showing the market its determination to constantly promote the development of renewable energy.

　　The energy generated by large hydropower projects of CYPC is renewable and pollution-free with “zero emission” of carbon dioxide. In 2020, the four cascade hydropower plants of CYPC generated accumulatively 226.93 TWh of electricity, which is equivalent to saving 69.5314 million tons of standard coal, or alternatively, reducing the emission of carbon dioxide by 190.1673 million tons, sulfur dioxide by 42,400 tons or nitrogen oxides by 44,300 tons. CYPC set an example for the society and contributed to the goal of “peaking carbon dioxide emissions before 2030 and achieving carbon neutrality before 2060”.

　　CYPC will take the initiative to support “Carbon Neutrality”, “A New Type of Power System Giving Priority to New Energy” and other major national strategies. By scaling up the development of renewable energy and accelerating the replacement of fossil energy, CYPC will keep  providing the society with clean and sustainable green power, playing an active role in mitigating climate change, and contributing to the goals of “peaking carbon dioxide emissions before 2030 and achieving carbon neutrality before 2060”.