China green credit grows www.chinadaily.com

Banks issue 75 billion yuan worth of environmental bonds in the mainland in the first half of the year

With environmental issues looming high on policymakers' agendas, China is grabbing the lion's share of global green funding, demonstrating the country's potential as the game changer for the green bond market.
The issuance of green bonds, which are debt instruments exclusively for projects that address environmental issues, totaled 75 billion yuan ($11 billion) in the mainland over the first half of the year, amounting to 33 percent of the global total, according to data from the central bank.

The nation's rapidly growing sale of such debt has been in the market spotlight for no more than 18 months. Chinese banks have emerged as Asia's No 1 issuer, leading the green finance rush. The country is on course to realize the funding target of $46 billion by the end of the year, said Ma Beijia, equity analyst at Bank of America Merrill Lynch.

The world's second-largest economy is in dire need of 2 trillion yuan to 4 trillion yuan of green investment annually, with public finance only accounting for 15 percent of this amount and the remaining 85 percent coming from private capital, as data from BofA Merrill Lynch showed.

"Green bonds, in particular, stand as the key to mobilizing private capital for environmental needs," Ma said.

In July, the Bank of China sold $3.03 billion in new green bonds, the largest international issuance of its kind and the very first deal made in dollars, euros and yuan, comprising two-year, three-year and five-year bonds to finance solar, wind and biomass projects throughout the world.

The multibillion-dollar sale also highlighted Bank of China as the first lender from Asia to issue such instruments in Europe, leading the global green financing market, which had previously been European dominated.

The Chinese mainland's enthusiasm to tap the green market has added some clout to the market, where issuance has so far been on a small scale.

But, the hard fact is that even though the green market hit a record of $100 billion last year and is predicted to reach $80-90 billion this year, the sector remains a tiny part of the global bond market, which is around $78 trillion.

"The overall green funding pool is not big enough right now. For emerging markets, it's even smaller," Ma noted.

In a market pioneered and paced by multinational financial institutions in developed economies like the European Investment Bank and the World Bank, analysts are eyeing more and more corporate issuers to join the fray.

The growth of the corporate green bonds market opens up the market to higher yields than the debt issued by the AAA-rated multilateral banks, helping to ease the lingering concern over the yields that besets green bonds investors today.

Utility companies, with easier access to green business, are the natural forerunner.

But the market would welcome more household blue-chip names, even if they don't have much green business footprint, to make a foray and help the issuance pick up steam

Yahoo says hackers stole data from 500 million accounts in 2014 www.reuters.com

Shipping giant Maersk to split up and focus on North Sea www.bbc.com

Maersk, the Copenhagen-based shipping giant, is to be split up with its energy interests directed more towards the North Sea.
The family-owned firm, formally known as AP Moller-Maersk, will focus on its transport and logistics business.
The energy division is to shrink its global reach and focus more on the North Sea, where it has expertise.
That division has around 800 employees based in Aberdeen, working both on and offshore.
The company employs 88,000 people and operates across 130 countries, with turnover of more than $40bn (£31bn).
Work will continue on existing energy projects, including some of the biggest projects in the UK offshore sector. But the company signalled that new investment commitments may be low, particularly in tankers and drilling.
Maersk Oil has been operating in the UK central North Sea sector for 11 years, and is a partner in some of the biggest developments during that time, including the Golden Eagle.

Shipping has been hit by sharp reductions in rates for containers - a notoriously volatile market. That is partly due to a downturn in trade, and also to the extra tonnage added to the world container fleet.
Hanjin Shipping, the seventh-biggest in container transport and based in South Korea, recently filed for bankruptcy. It is struggling to find the finance to offload cargo from its ships, worth several billion pounds.
Maersk's energy business faces problems which are at least as deep as shipping, due to the fall in the price of oil. The company's strategic review speaks of finding "solutions" including joint ventures, mergers or spinning off companies for separate listing. The vagueness of the plan makes it look like an intention to exit as much of that sector as possible, and shipping is clearly the priority.
The North Sea presence may be one part of the energy division that is retained, as the technology involved is an area of expertise. That's unless a buyer can be found.
Breaking up the 112-year-old conglomerate is a reversal of the strategy under which Maersk Line grew to have a fleet of 590 ships, plus 500 smaller service ships. It was guided by its chairman Maersk McKinney Moller, who remained active in the company until his death four years ago, aged 98.
It is operator of the Culzean gas field development, which is one of the biggest in UK waters for 25 years. It is expected to meet 5% of Britain's gas demand after it comes on-stream, scheduled for 2019.
Its other production is from Denmark, Qatar, Kazakhstan, the US Gulf of Mexico and Algeria. Exploration and development activities are also under way in Angola, Kenya, Ethiopia, Greenland, Brazil, Kurdistan, and the huge Johan Sverdrup field being developed in the Norwegian North Sea.
Michael Pram Rasmussen, the chairman, said in a statement: "Separating our transport and logistics businesses and our oil and oil related businesses...will enable both to focus on their respective markets. Both face very different underlying fundamentals and competitive environments."
The oil, drilling, offshore services and tanker divisions face moves towards joint ventures, sales and stock market floats over the next two years. Profits in that division have recently come in well below expectations.
Key development projects
The company's strategy states: "Maersk Oil will adjust its current strategy to focus its portfolio in fewer geographies to gain scale in basins, particularly in the North Sea, where it can leverage its strong capabilities within subsurface modelling, well technology and efficient operations. Maersk Oil will aim to strengthen its portfolio through acquisitions or mergers.
"Further, Maersk Oil will mature existing key development projects, while keeping exploration activities and expenses at a low level. While the strategic focus will be reflected in a disciplined capital allocation, investments in strategic projects already sanctioned or under development will continue as planned.
"Maersk Drilling, Maersk Supply Services, and Maersk Tankers will continue to optimise their market position and operation with the existing fleet and order book. Additional investments in the group's offshore service businesses and Maersk Tankers will be limited."
Denmark's Sydbank estimated the value of the logistics business at, very roughly, £23bn. Its central estimate for the energy division was close to £13bn.

Hydro-electric power plant be built in western Mongolia www.vom.mn

Hydro-electric power plant to be built in western Mongolia. The new hydro power station will supply electricity to the western region of the country. The three westernmost provinces are often plagued by blackouts and are largely dependent on electricity export from Russia. The plant, which has the capacity to generate 92.8 megawatt electricity, is being financed by USD 248 million from Turkey’s “ZTM Engineering and Consulting Co. Inc.” The hydro-electric power plant would be constructed under “build-operate-transfer” terms as set out in the Concession Law.

Thousands of UK-based finance firms may lose EU ‘passport’ rights www.rt.com

Russia & China start building connecting suspension bridge www.rt.com

Mongolian Board Members for OT LLC are appointed www.montsame.mn

 The new Mongolian Board members for Oyu Tolgoi LLC are Executive Director of Erdenes Oyu Tolgoi LLC B. Munkhbaatar, N. Bagabandi and Ch. Altannar. N. Bagabandi is the former President of Mongolia and one of the first board members of Oyu Tolgoi LLC before. Ch. Altannar, a mathematician was the Director of the German-Mongolian Institute for Resources and Technology and worked at Oyu Tolgoi LLC for a certain time

Postal Bank IPO to be the world's biggest www.chianadaily.com.cn

Banks digging deep to help revamp Shanxi coal sector www.chinadaily.cn

Hanjin Shipping shares rally 28 percent after Korean Air approves lending www.reuters.com