Best green securities house 2017
China Securities, established in Beijing in 2005, ranked among China’s top three bond underwriters in the last three years. After embracing green-bond underwriting as a new strategic direction in business development two years ago, the securities house has established itself as a clear leader in the underwriting of both corporate green bonds and green bonds placed by domestic financial institutions.
As the lead underwriter, China Securities underwrote 13 batches of green bonds valued at Rmb46 billion ($6.7 billion) in total, between April 2016 and March 2017. The borrowers were six large domestic companies, including China Three Gorges Corp, China’s largest hydropower generator, and Bank of Communications, a leading domestic commercial bank. The number of tranches and the total value of the green bonds it underwrote were both by far the largest among securities houses in China during the period.
Last year, China Securities, as the lead underwriter, also organized a Rmb4.04 billion corporate green-bond issue for Longfor Properties, a big real estate developer in China. Proceeds of the bonds would be used to help Longfor develop energy saving properties. The move made Longfor the first green-bond issuer among Chinese real estate developers.
As an enthusiastic green-bond underwriter, China Securities has also demonstrated strong expertise in structuring cost-effective deals for green-bond issuers. Longfor Properties’ green bonds provide a good example. The interest rate range for the three tranches was 4.40% to 4.75%, well below the average level for corporate bonds issued by real estate developers in China last year.
As a leading securities house, China Securities currently operates a network of 245 business outlets across the country and has more than 6 million clients. Leveraging its nationwide business network and the rich experience it has in underwriting green bonds, the securities house is on track to play a more important role in aiding the development of the green-bond market in China.