Handbook: How to issue a green panda bond

This handbook by the Climate Bonds Initiative provides a comprehensive guide for foreign entities wishing to issue green panda bonds in mainland China. It details the regulatory landscape, the definition of green panda bonds, the step-by-step issuance process, and the specific requirements for both panda bonds and green bonds within the Chinese market.

• A green panda bond is defined as an RMB-denominated bond issued in mainland China by a foreign entity, where the proceeds are specifically earmarked for green assets or projects. To qualify, the issuer must label the bonds as "green", earmark proceeds for green projects, and track and report on the use of those proceeds.
• The Chinese green bond market is the second largest globally, with total issuance reaching USD60.9bn as of October 2018. Commercial banks are the primary investors in the domestic bond market, representing approximately 85% of overall bond deals.
• Issuing a green panda bond requires compliance with two sets of regulations: those for panda bonds and those for green bonds. The process involves four main stages: preparation (developing a framework and identifying projects), application for approval (meeting issuer qualifications and seeking regulatory approval), bond issuance, and ongoing reporting (including annual reports and quarterly disclosures for certain market segments).
• The regulatory environment for bonds in China is managed by several key bodies: the People's Bank of China (PBoC), the China Securities Regulatory Commission (CSRC), and the National Development and Reform Commission (NDRC). The interbank market is the most dominant, accounting for over 90% of outstanding bonds and trading volume.
• Foreign financial institutions seeking to issue panda bonds must meet specific qualifications, including a paid-in capital of RMB 10 billion or its foreign currency equivalent, sound corporate governance, and recorded profitability for each of the three most recent years.
• Since 2016, five green panda bond deals have been completed, totaling RMB5.9bn (USD880m). The first was issued in July 2016 by the New Development Bank (NDB) for RMB3bn (USD448m) to fund projects in China, Brazil, and Russia.
• Renewable energy is the primary climate theme for the allocation of proceeds in China's green bond market, receiving over 60% of funds to date. Other significant sectors include low carbon transport, water management, buildings, and waste.

APA

Climate Bonds Initiative (2018). Handbook: How to issue a green panda bond. https://www.climatebonds.net/files/documents/publications/CBI-Green-Panda-Bonds-30Nov18.pdf

Chicago

Climate Bonds Initiative. Handbook: How to issue a green panda bond. 2018. https://www.climatebonds.net/files/documents/publications/CBI-Green-Panda-Bonds-30Nov18.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Handbook: How to issue a green panda bond |date=November 2018 |url=https://www.climatebonds.net/files/documents/publications/CBI-Green-Panda-Bonds-30Nov18.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2018handbook, author = {{Climate Bonds Initiative}}, title = {{Handbook: How to issue a green panda bond}}, institution = {Climate Bonds Initiative}, year = {2018}, month = nov, url = {https://www.climatebonds.net/files/documents/publications/CBI-Green-Panda-Bonds-30Nov18.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }