BAIC proposes 4.8 billion yuan bond sale for green projects, sources say
BAIC Motor Corp. is applying for a 4.8 billion yuan ($738 million) quota to sell debt that's tied to environmentally friendly projects, people familiar with the matter said.
Proceeds would be used to fund production lines for energy-saving cars and working capital, according to one source.
The carmaker's move comes after Beijing Automotive Group Co., the parent of BAIC, said this month that it will aim for total sales of 600,000 electric cars and plug-in hybrids by 2020.
BAIC's investor relations department in Beijing did not respond to a request for comment.
China considers bonds to be green if they help fund projects tied to energy savings, pollution reduction or clean transportation, and the first sales of the securities were authorized in December.
Shanghai Pudong Development Bank Co. and Industrial Bank Co. raised a total of 30 billion yuan in January in the country's first domestic green bond sales.
This month, the Shanghai stock exchange took another step toward expanding such financing with plans for a pilot program that would enable the environmental corporate bonds to be traded on the bourse.