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ICBC’s Diversified Innovation Supports Green Economic Development
 

In recent years, through active application of the new development philosophy of “innovation, coordination, green, opening and sharing” and the overall arrangement requirement of the “Five-in-one” approach, ICBC has accelerated its innovation in green finance service and spared no effort to support the development of green industry. By now, ICBC’s outstanding loan in the green economic field has exceeded RMB1.1 trillion, and it has underwritten 17 green bonds of various kinds with a total amount of RMB116.6 billion. These efforts have provided financial support for many green projects such as energy conservation and emission reduction, green energy, environmental protection and pollution abatement, thus vigorously promoting the development of green economy .

As is explained by an ICBC official, since 2015, ICBC has recorded an annual growth rate of around 10% in loan balance granted to green sectors, such as energy saving and environmental protection projects, exceeding the average growth rate of corporate loans over the same period. Besides, ICBC actively develops diverse product lines which cover multiple operations such as fiscal advising, bonds underwriting, debt restructuring, renting + factoring, “loan + investment banking”, wealth management and investment as well as industrial funds. With innovative moves in “equity + debt” and asset securitization which rely on the coordination between investment and loan business, ICBC has successfully offered omni-product, multi-channel support for the green economy. As a major underwriter, ICBC underwrote the first domestic green financial bond, the first green enterprise bond, as well as the first green interbank-market non-financial corporate debt financing instrument. As a joint bookrunner and joint lead manager, ICBC also successfully issued the first Chinese corporate green bond in euro in Asia. All these efforts have supported China’s key projects as well as the financing needs of State Grid Corporation of China, China Three Gorges Group, BAIC Motor, Beijing Enterprises Water Group Limited, etc. By the end of September, ICBC had all together underwritten 17 various green bonds which raised RMB116.6 trillion, ranking first among domestic banking institutions.

Besides, ICBC has expanded the investment of wealth management funds in green economic areas, flexibly adopted innovative financing methods with equity funds such as environmental protection industry fund and poverty-alleviation and rural area development fund, provided priority support for emerging industries that follow the trend of economic transformation and bear strategic values. All these endeavors have channeled capital towards the green industry while kept providing stable returns for customers. By the end of September, ICBC had invested nearly RMB300 billion in projects in this field.

As to the research on green finance, ICBC has witnessed a range of state-of-the-art research achievements in stress test of environment risk, ICBC ESG green indicators and case study of domestic and overseas green finance, among which the Stress Test Research on the Impact of Environment Risk over the Credit Risk of Commercial Banks was officially published on G20 London Green Finance Summit and has won universal recognition among global peers.

 


(2017-12-08)
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