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Green Transaction Evaluation Score For CIFI’s US$500 Million Green Bond

Green Transaction Evaluation Score For CIFI’s US$500 Million Green Bond

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S&P Global Ratings has assigned CIFI Holdings (Group) Co. Ltd. (CIFI)’s US$500 million green bond a Green Transaction Evaluation score of E1/86. This is the highest score available under the E1-E4 scale.

CIFI primarily engages in property development and investment, requiring all properties to meet at least the national one-star green building standard.

This is CIFI’s second green bond issuance since its first issuance in July 2020. The proceeds will be allocated to refinancing two commercial projects in Shanghai and two residential buildings in Wuxi and Changzhou.

The overall score comprises a Transparency score of 79, a Governance score of 81, and an Environmental Benefit score of 90.

The Transparency score of 79 reflects CIFI’s commitment to annually disclose the aggregate amount allocated to eligible projects, and its comprehensive impact reporting based on energy and water usage savings, energy efficiency gains, and avoided GHG indicators.

The very strong Governance score of 81 reflects how CIFI’s Green Finance Framework governs the allocation and management of proceeds. The company has established an internal register to track funds, and a process piloted by its ESG working group (EWG) to direct the flow of funds exclusively to eligible projects.

The Environmental Benefit of this transaction is excellent, with a score of 90. This reflects the meaningful environmental benefits from CIFI’s green building projects, which help to offset the relatively higher carbon intensity of the building sector in China.

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Anand Gupta Editor - EQ Int'l Media Network