Baogang issues bond for carbon reduction projects

Baogang Group, the largest iron and steel manufacturer in the Inner Mongolia autonomous region, issued a green bond focusing on carbon neutral projects on the Shanghai Stock Exchange recently, the first of its kind in the region's steel industry.

The issuing value of the bond is 500 million yuan ($76.5 million) with a term of five years. More than 70 percent of the money raised will be used for projects to reduce carbon emissions.

The project is mainly intended to convert recycled blast furnace gases into electricity, which can cut emissions and save energy. It is expected to reduce coal consumption by 131,900 metric tons and reduce carbon dioxide emission by 88,400 tons annually.