Sinopec Luyuan Geothermal Energy Development Co., Ltd., a subsidiary of Xinxing Company, successfully issued the first green carbon-neutral ABS bond (asset-backed special plan) in Xiongan New Area on the Shanghai Stock Exchange, with an issuance scale of 300 million yuan and an issuance period of 3 +2 years, the raised funds will be used to increase the development and utilization of geothermal resources, as well as technology research and development in geothermal related fields.
The issuance of green carbon neutral bonds combines the two connotations of carbon neutrality and the construction of Xiongan New Area. It is the first independent appearance of Sinopec's geothermal industry in the capital market, and it is also an important measure for Sinopec to actively promote the construction of Xiongan New Area. Green finance provides innovative ideas for the development of geothermal industry in Xiongan New Area. Once the bond was launched, it was fully recognized by market investment institutions, and investors from all parties actively subscribed.
Green bonds refer to bonds that raise funds specifically to support climate or environmental projects. As an important part of green finance, green bonds can not only help funds enter the green field, meet the funding needs of green and low-carbon projects, but also promote green and low-carbon enterprises. transformation. In April 2021, Sinopec issued its first green bond, an equity-funded carbon neutral bond, with a scale of 1.1 billion yuan. The funds raised were used for photovoltaic, wind power, geothermal and other green projects. It was the first carbon-neutral bond issued by a domestic oil and gas company. Zhonghe Debt.
The original owner of the bond issuance, Sinopec Luyuan Company, is a joint venture established by Xinxing Company and Iceland Polar Green Energy Company. The county has built more than 100 clean heating and heating stations, with a heating capacity of over 10 million square meters, which can replace 190,000 tons of standard coal and reduce carbon dioxide emissions by 494,000 tons.
