1 Annual Report on Bank of China’s Green Bonds Bank of China (“BOC”) Green Bonds enables BOC to support environment friendly projects and companies which are particularly active in terms of environment preservation, energy transition or climate change mitigation. As stated in the Offering Circular as well as Bank of China Green Bond Management Statement (“the Management Statement”) 1 , we hereby provide BOC Green Bonds Annual Report, disclosing the allocation of the bond proceeds as well as the expected environmental impacts of the Eligible Green Projects as of 31 st December, 2017. Outstanding BOC Green Bonds Issue Date Maturity (year) Currency Amount (million) CNY Equivalent Amount (million) Green Bond 1 2016/7/5 3 USD 500 3,348 2016/7/5 3 USD 750 5,021 2016/7/5 5 USD 1,000 6,695 2016/7/5 5 EUR 500 3,701 2016/7/5 2 CNY 1,500 1,500 Green Bond 2 2016/11/3 3 USD 500 3,392 Green Bond 3 2017/11/15 5 USD 500 3,315 2017/11/15 3 EUR 700 5,449 2017/11/15 3 CNY 1000 1,000 Bond Details and Proceeds Allocation Green Bond 1 was issued in the offshore market through Luxemburg Branch and New York Branch in July 2016. The total amount equated to CNY 20,265 million, and the net proceeds equated to CNY20,224 million. As of December 31, 2017, all of these net proceeds had been utilized to fund 8 metro projects, 3 wind power generation projects, 1 waste water treatment project and 1 solar power generation project. Green Bond 2 was China Green Covered Bond and issued in the offshore market through London Branch in November 2016. The total amount equated to CNY 3,392 million, and the net proceeds equivalents to CNY 3,381 million. As of December 31, 2017, all of these net proceeds had been utilized to fund 9 wind power generation projects, 2 waste water treatment projects and 1 solar power generation project. Green Bond 3 was certified by Climate Bond Initiative (CBI) and issued in the offshore market through Paris Branch in November 2017. The total amount equated to CNY 9,763 million, and net proceeds equated to CNY9,753 million. 1 available at http://www.boc.cn/en/investor/ir10/
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Annual Report on Bank of China’s Green Bonds
Bank of China (“BOC”) Green Bonds enables BOC to support environment friendly projects and companies which
are particularly active in terms of environment preservation, energy transition or climate change mitigation. As
stated in the Offering Circular as well as Bank of China Green Bond Management Statement (“the Management
Statement”)1, we hereby provide BOC Green Bonds Annual Report, disclosing the allocation of the bond proceeds
as well as the expected environmental impacts of the Eligible Green Projects as of 31st December, 2017.
Outstanding BOC Green Bonds
Issue Date
Maturity
(year) Currency
Amount
(million)
CNY Equivalent Amount
(million)
Green Bond 1
2016/7/5 3 USD 500 3,348
2016/7/5 3 USD 750 5,021
2016/7/5 5 USD 1,000 6,695
2016/7/5 5 EUR 500 3,701
2016/7/5 2 CNY 1,500 1,500
Green Bond 2 2016/11/3 3 USD 500 3,392
Green Bond 3
2017/11/15 5 USD 500 3,315
2017/11/15 3 EUR 700 5,449
2017/11/15 3 CNY 1000 1,000
Bond Details and Proceeds Allocation
Green Bond 1 was issued in the offshore market through Luxemburg Branch and New York Branch in July 2016.
The total amount equated to CNY 20,265 million, and the net proceeds equated to CNY20,224 million. As of
December 31, 2017, all of these net proceeds had been utilized to fund 8 metro projects, 3 wind power generation
projects, 1 waste water treatment project and 1 solar power generation project.
Green Bond 2 was China Green Covered Bond and issued in the offshore market through London Branch in
November 2016. The total amount equated to CNY 3,392 million, and the net proceeds equivalents to CNY 3,381
million. As of December 31, 2017, all of these net proceeds had been utilized to fund 9 wind power generation
projects, 2 waste water treatment projects and 1 solar power generation project.
Green Bond 3 was certified by Climate Bond Initiative (CBI) and issued in the offshore market through Paris Branch
in November 2017. The total amount equated to CNY 9,763 million, and net proceeds equated to CNY9,753 million.
1 available at http://www.boc.cn/en/investor/ir10/
2
As of December 31, 2017, 92% of net proceeds had been utilized to fund 11 metro projects, 2 wind power
generation projects.
All the BOC Green Bonds are in alignment with Green Bond Principles (GBP) published by the Executive Committee
of Green Bond Principles, with the International Capital Market Association (ICMA) serving as Secretariat.
Impact Reporting
Below shows the expected environmental impacts in detail. Due to the confidential considerations for our loan
clients, the impact results are disclosed on a portfolio basis. For each of the indicators in the table, the project-by-
project results include only the pro-rated share (as a percentage of the issuer's share of the total financing) of the
total projects’ results; these individual pro-rata project impacts are then aggregated to indicate the overall impact
of the funded projects in a certain category.
The environmental impacts are calculated in categories. The impacts of the Renewable Energy Projects refer to the
For Waste Water Treatment Projects, the environmental impacts are calculated based on the capacity of the
treatment effectiveness (waste water treatment = treatment capacity of the facility * (influent quality - effluent
quality)). Noted by ** in the table below.
The impacts of the Clean Transportation Projects are calculated based on ACM0016 Mass rapid transit projects
(version 4.0)3. Noted by *** in the table below.
Renewable Energy
(Wind&Solar)
Allocated amount
(CNY million)
Annual
generation(MWh)
Renewable energy
capacity added(MW)
Annual GHG emissions
reduced*(CO2 tonnes)
1,239.10 699,850.52 639 615,948
Waste Water Treatment Allocated amount
(CNY million)
Annual pollution prevention**(tonnes)
COD NH3-N
500 1,343 90
Clean Transportation
(Electrified Metro)
Allocated amount
(CNY million)
Annual GHG emissions
reduced*** (CO2 tonnes)
18,485.36 68,748
2 available at http://cdm.unfccc.int/filestorage/D/5/Y/D5YFS9I3VKBT18MQNGX0LPZ6U7AWCO/ACM0002_%28v17%200%29_clean.pdf?t=bGt8b2tiaTVtfDDXyk1Kj1cAVtGwMe6a7-hX 3 available at http://cdm.unfccc.int/filestorage/3/J/I/3JIUSA5XE4QH127BPK0WFN6DMZVYRT/EB85_repan10_ACM0016_ver_04.0.pdf?t=Z3V8b2tiaHJkfDBMg0eSxJTDh6CNRcIIWBxk
4 This represents the amount legally committed by the issuer for the project or component that is eligible for green bond financing. 5 This is the share of the total project cost that is financed by the issuer. 6 This represents the amount of green bond proceeds that has been allocated to disbursements to the project. 7 Chemical Oxygen Demand 8 Ammonia Nitrogen
As of December 31, 2017, the proceeds of Green Bond 2 had been utilized to fund 12 Eligible Green Projects. One
project from each category was selected for field investigation. The details of the field investigation of the 2 projects
are as follow:
Project I: A wind power generation project located in the east
of Inner Mongolia Autonomous Region of China, a
concession project with a generation capacity of 49.5MW. So
far, this Project has already been put into operation. It is
learnt from the on-site investigation that the total installed
capacity of this project is 49.5MW with the grid-connect
volume of 99,320 MWh. Equivalently, the Project could
reduce CO2 emission of 89,457.52 tons.
9
Project II: A Water treatment project located in the eastern
China, consisting of the expansion of an Urban Sewage
Treatment Plant together with the laying of supporting pipeline
(the “Urban Sewage Treatment Project”) and the Rural Sewage
Treatment Project. So far, the Urban Sewage Treatment Plant
and Rural Sewage Project have both been completed. Based on
the on-site investigation, the treatment capacity of the Urban
Sewage Treatment Project in 2017 is 38.88million tons. The
direct reduction of pollutants are as follows: COD : 1944 tons /
year, NH3-N : 369.36 tons / year.
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Table 4 Environmental Impacts of the Renewable Energy Projects on a Portfolio Basis
Signed
amount9
Share of total portfolio
financing10
Eligibility for
green bonds
RE
component
Allocated
amount11
Average portfolio
lifetime
Annual
generation
Renewable energy
capacity added
Annual GHG emissions
reduced*
CNY million % % % CNY million year MWh MW tonnes of CO2 equivalent
Renewable Energy 3071.86 36.84 100 100 3071.86 20
938,201.92 882 799,952.63
Table 5 Environmental Impacts of the Pollution Prevention and Control Projects on a Portfolio Basis
9 This represents the amount legally committed by the issuer for the project or component that is eligible for green bond financing. 10 This is the share of the total project cost that is financed by the issuer. 11 This represents the amount of green bond proceeds that has been allocated to disbursements to the project. 12 Chemical Oxygen Demand 13 Ammonia Nitrogen
Signed
amount
Share of total portfolio
financing
Eligibility for green
bonds Allocated amount
Average portfolio
lifetime Annual pollution prevention**
CNY million % % CNY million year tonnes
Pollution prevention and control 309.64 20.11 100 309.64 20 COD12 NH3-N 13
3,208.47 403.59
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Appendix 3
Green Bond 3
The use of proceeds, project evaluation and selection, management of proceeds, and reporting in relation to BoC’s
management during Green Bond 3 duration is in accordance with the Climate Bond Standard.
14 This represents the amount legally committed by the issuer for the project or component that is eligible for green bond financing. 15 This is the share of the total project cost that is financed by the issuer. 16 This represents the amount of green bond proceeds that has been allocated to disbursements to the project.