Focusing on the objective that the Eleventh Five-Year Plan has brought forward to "Accelerate the building of an energy-conserving, environment-friendly society", Industrial Bank again plays the role as an avant-courier. May 17, Industrial Bank signed with one of its foreign shareholders, International Finance Corporation (IFC), for the cooperative agreement of Utility-Based Energy Efficiency Finance Program, announcing its steps into energy-efficient and environmental protection industry.
According to the agreement, through market-based operational pattern, Industrial Bank and IFC will bring together their advantage on market-based financing, service for public affairs and risk management to promote the sustainable development of Chinese energy-efficient and environmental protection industry with most extend and efficiency, On the base of energy-efficient and environmental protection corporations and programs recognized by IFC and its own loan granting procedures, Industrial bank will grant loans to the qualified corporations and programs. IFC will support Industrial Bank by sharing the principal loss, supplying relevant technological aid and performance incentive. The risk-sharing mechanism adopted in this cooperative program is not only the innovative move for both Industrial Bank and IFC, but also a pattern for foreign cooperation in Chinese financial sector.
At present, as an emerging business area, domestic environmental protection industry is still in its start-up stage and facing numerous uncertain factors. All this increased the difficulties of its financial support from domestic banking sectors. The cooperative agreement between Industrial Bank and IFC was signed in bid to taking advantage of IFC's rich experience in service of public affairs and technological strength of risk management on small and medium enterprises lending projects.
Li Renjie, Industrial Bank's President, stated on the signing ceremony, "We hope that the cooperation will help Industrial bank access to new business sort and new profit-increasing points. We also wish that with the joint effort of both sides, the new program could be a successful example support for energy-efficient and environmental protection industry development by Chinese financial sectors."