The Hungarian state is preparing for an unprecedented Chinese bond issue
The Hungarian state has previously acquired the opportunity to issue green bonds to the Chinese market, and its issuance program is in line with international green bond issuance standards, the report points out. The new Hungarian green Chinese bond will be available to Chinese and foreign institutional investors through a program called Bond Connect.
Already in 2017, Hungary issued the first Chinese bond worth June 1 billion with a maturity of 3 years, with a coupon of 4.85%, followed in 2018 with a coupon of 2 billion yuan with a coupon of 4.3%. In October this year, the Polish state launched a 3 billion yuan 3-year paper with a 3.2% coupon on the Chinese interbank market (the Polish state has a better credit rating than the Hungarian one, as the former has an A- rating and the Hungarian one has a Baa2 and BBB rating. classified by the three international institutions). The last time the Portuguese state issued 3-year securities worth 2 billion yuan in the Chinese interbank bond market in May 2019.
As we have indicated, the latest news came just after it appeared on the website of the Hungarian Public Debt Management Center on Monday afternoon. the news, according to which the Hungary Green Bond Impact Assessment Report for 2020 has been completed. As the summary points out, the report presents the main environmental impacts of green budget spending, including, where quantifiable, the amount of CO2 emissions they can avoid, as published in May 2020. In the Green Bond Framework Program of Hungary as specified. In this system, Hungary has undertaken to provide public information to investors on the use and utilization of the proceeds from the issuance of green bonds. XLIV of 2020 on Climate Protection. Hungary states in its law that it will implement a comprehensive, comprehensive climate, energy and environmental policy, ensure the country’s transition to a low-carbon and green economy, with the ultimate goal of achieving climate neutrality by 2050. Green bonds contribute to these goals and provide some of the necessary resources.
THE published The 57-page English impact assessment report summarizes in detail the specific purposes for which the issue of fattened green bonds in the last 3 years (2018-2020) went for a total of HUF 574 billion (mainly for clean transport purposes, 86.7%) and their environmental impact. emissions avoidance). These should be summarized in the following two tables:
Clean-purpose projects are further subdivided by the material and show that they include railway infrastructure operating costs (39% of which contributed to GHG emissions avoidance, line upgrades, and the cost of purchasing electric cars and buses).
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