Three Gorges Finance II received a score of E1/83 on S&P Global Ratings’ new Green Evaluation scale for its €650 million green bond issuance due in June 2024. This is the first ever Chinese green bond to be ranked under the Green Evaluation framework. The bonds will be used to finance European wind power projects in Portugal and Germany – totalling 710 MW of installed capacity – which have been acquired by China Three Gorges Corp., the largest hydropower enterprise in the world.
The transaction received an overall score of 83, which equates to E1, the highest level in the scoring range of E1-E4 for mitigation proceeds. This high overall score reflects robust scores in both Governance (73) and Transparency (67) and an excellent Mitigation score (91). The proceeds will be allocated to wind power projects in Portugal and Germany. The Portuguese assets consist of 12 onshore wind projects in five regions across the country. The German asset is an offshore wind project in the North Sea, known as WindMW GmbH or Meerwind. This issuance is in line with China Three Gorges Corp.’s corporate strategy, under which it has acquired and plans to continue acquiring assets, both in China and further afield, to grow and diversity its renewable energy business.
Following distribution by Moorgate, the Green Evaluation was covered by Environmental Finance.