CCDC has launched the World’s first climate-aligned bond index new partnership with Climate Bonds Initiative & CECEP
BEIJING/LONDON: 11.30 BST: 02/09/2016: China Central Depository & Clearing Co. ltd (CCDC) has partnered with Climate Bonds Initiative (CBI) and CECEP Consulting to launch the ChinaBond China Climate-Aligned Bond Index on September 2, 2016. As the world’s first Climate-Aligned bond index, it will fill a gap in tracking a growing source of bond issuance.
Climate-aligned bonds are used to finance low carbon and climate adaptation infrastructure, including labelled green bonds with use of proceeds defined and labelled as green, and a larger universe of bonds financing climate-aligned assets that do not carry a green label. Climate-aligned bonds are financing assets across various climate themes: energy, transportation, construction, water, waste pollution control, agriculture and forestry.
In order to conform to international standards and satisfy the demand of international investors, CBI and CECEP Consulting, using their combined domestic and international expertise, identify climate-aligned bonds for the Index based on the use of funds and the information of the issuers’ industry, main business and main products.
According to the data analysis, the base date of the ChinaBond China Climate-Aligned Bond Index has been set as Dec 31, 2009 and the base value is 100. As of July 29 2016, the index has 278 constituents, a cap-weighted duration of 5.66, a Total Return Index return of 10.24 percent in the recent year and a market value outstanding of 1.31 trillion RMB (USD 194.6 billion).
The launch of ChinaBond China Climate-Aligned Bond Index now provides a series of indicators to reflect the price change of overall climate-aligned bond market and climate-aligned investment performance benchmark for domestic and foreign investors.
It improves the transparency of the climate-aligned bond market in China, sets a positive social image of climate-aligned bond issuers and promotes the development of the green economy and the formation of resource-saving and environment-friendly society.