On June 9, 2022, China's first Clean Air Bond (CAB) - "2022 Phase I of Zhejiang Anji Liangshan State-owned Holding Group Co., Ltd. Green Bond", which was guaranteed and enhanced by I&G, was successfully issued. The size of the bonds was RMB 800 million, with a maturity of 7 years and I&G subscribed CNY 100 million, with China Securities Co. and Sinolink Securities Co. acting as underwriters. The funds raised will be used for the construction of landfill ecological restoration, solid waste disposal center and construction waste sorting center in Anji County.

As a new tool to support green development, the concept of Clean Air Bonds (CABs) was born in June 2020 in the design stage of the Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region –Green Financing Scale Up Project (also referred to as Green Financing Scale Up Project or Phase II Project). Under the guidance of the National Development and Reform Commission (NDRC) and the Ministry of Finance (MOF), the Asian Development Bank (ADB) and China National Investment and Guaranty Corporation (I&G) have creatively proposed the product in order to promote financial innovation for green development. The product was designed to integrate China’s domestic climate bond standards and international standards, help China's green bond market to further participate in air quality improving financial activities, and promote China’s air quality improvement and greenhouse gas emission reduction.

The CABs mainly include corporate bonds and asset-backed products. Through the combination of investment and guarantee, the CABs will become a new tool to provide long-term stable financial support for Emission Peak Action. As a "true green bond", the CABs must meet the China’s domestic green bond standards, green industry standards, ADB’s ESMS standards and the Climate Bonds Initiative (CBI) standards. Once the bond is recognized as a qualified CAB, I&G can not only provide credit enhancement support but also participate in the subscription of the bonds.

The green bond certification of Anji CAB was assessed by Shanghai Brilliance Credit Rating & Investors Service Co.,Ltd. And the CBI certification was assessed by China Chengxin Green Finance (Beijing) Co., Ltd., a leading third-party certification agency in China. After comprehensive evaluation and review, the project meets the ADB project standards, China’s domestic green bond standards, green industry standards and the Climate Bonds Initiative (CBI) standards, and is recognized as a qualified CAB. The funds raised by Anji CAB will be used to support the construction project of Anji Industrial Park. After the project is completed, it will comprehensively improve the waste treatment capacity and green development level of Anji County, and contribute to the construction of the most beautiful county in China and the first demonstration area of ecological civilization in Huzhou City. As China's first CAB, Anji CAB is of great significance in promoting the diversification of domestic green bond instruments, improving air quality and reducing greenhouse gas emissions.