Bank of Shanghai Issues First Green Bonds for Chinese Electric Car Sector

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Bank of Shanghai (BOS) has just issued the first green bonds for the Chinese electric car sector, amidst a push from Beijing for greater green financing.

BOS recently underwrote the issuance of green bonds by Shenzhen Yonglian Keji Company (深圳市永联科技公司), marking the first issuance of green bonds in China for an enterprise in the electric car sector.

Yongjian Keji said that funds raised by the issue would be used for the research and development of green power products including charging posts and charging modules, which are included under the People’s Bank of China’s (PBOC) “Green Bond Support Project Catalogue (2021 Annual Edition)” (绿色债券支持项目目录(2021 年版).

BOS said it engaged in active communications with regulatory authorities for the inclusion of the project under “green channel” financing, reducing the time required to obtain filing notification for the issue to just 7 working days.

The Chinese central government has pushed for rapid growth of green finance since the start of 2021, after first unveiling the ambitious carbon mitigation targets of achieving peak carbon in 2030 and carbon neutrality by 2060.