China Hunan Issues Special Bonds to Tackle Heavy Metal Pollution

SHANGHAI, Mar. 4 (SMM) – China’s Hunan province successfully issued special bonds to tackle heavy metal pollution, setting a precedent in the country, according to the Ministry of Environmental Protection (MEP).

Investment and financing companies in Hunan’s Hengyang, Xiangtan and Chenzhou cities have issued a total of $6.7-billion-yuan ($1.09-billion) bonds for the sole use of treating heavy metal pollution in local regions, the MEP said on its website on Monday.

Maturity of these bonds is set at seven years and interest rate is decided by bidirectional inquiry in accords with market conditions, the ministry said in the statement.

Buyers who are institutional investors are paid the coupon once a year, by mainly land-transferring fees, and are repaid the principal from year three, 20% of the total each year, it said.