In order to implement the green concept and build a green real estate brand, also as an important step in promoting CIFI green finance, CIFI established a Green Finance Framework in April 2020 and received Second-Party Opinion from Sustainalytics, an independent third-party rating agency, Sustainalytics believes that CIFI Holdings is well-positioned to issue green bonds or loans and that the CIFI Green Finance Framework is robust, transparent, and in alignment with the four core components of the Green Bond Principles 2018 and Green Loan Principles 2018.
According to this framework, CIFI will continue to practice the green concept in the future, and plans to invest in eligible green projects through fund raising from green bond or loan financing, including green buildings, clean transportation, energy efficiency, renewable energy, sustainable water management, pollution prevention and control and climate change adaptation measures.
On July 14, 2020, CIFI issued the first offshore green bonds, signifying another milestone in the Group's promotion of green property management and sustainable development. This project issued USD 300 million 5.95% 5.25-year green evaluation, much lower than the fair price in the secondary market by 25 base points. Not only has CIFI received the highest rating of E1 for green bonds by Standard Poor's, we have also been awarded the Green Finance Certification (Post-issuance Stage) by the Hong Kong Quality Assurance Agency. Such green bonds have been admitted to the "Sustainable and Green Exchange (STAGE)" by HKSE, making CIFI the only property developer in China to be included in the first batch of enterprises on STAGE.
On May 11, 2021, the CIFI Group (00884.HK) announced its second issuance of green bonds with a total amount of USD 500 million, consisting of USD 350 million 4.45% 5.25-year and USD 150 million 4.8% 7-year green bonds, marking the longest term on record for CIFI’s offshore USD bonds. This time, CIFI again won the high recognition of authoritative ratings institutions and investors. As a result, this issuance gained a fourfold oversubscription, with peak orders exceeding a ninefold oversubscription. CIFI has successfully issued two batches of green bonds and gained the recognition of the capital market, which demonstrates that the Group is making constant breakthroughs in green finance and improving its ESG level.The issuance also has received the highest rating of E1 for green bonds by Standard Poor's.
On July 9, 2021, the CIFI Group released its first "Green Finance Report 2020" in according to the guideline of Green Finance Framework. The report focuses on disclosing the allocation, the environmental benefits, as well as the management and distribution of the company’s first green bonds issued last year. It has obtained an independent third-party certification from E&Y, and has again set a benchmark for the green and sustainable development of the industry.
According to the Green Finance Framework, CIFI promises to publish the Green Finance Report on an annual basis, so as to disclose the allocation of the green bond and the environmental benefits generated.