In the coming three years, Hunan Province will again receive special green financing not less than RMB 20 billion for the development of green economy, of which the financing scale in the field of water resource will not be less than RMB 10 billion. On the afternoon of October 29, Industrial Bank (IB) made the above commitment at the “Beautiful China Tour • Beautiful Huxiang – Promotion Conference of Hunan Province for Green Finance”.
With the witness of relevant governmental agencies including the Development and Reform Commission of Hunan Province and the Environmental Protection Department of Hunan Province, IB signed a bank-enterprise cooperation agreement with Xiangtan Zhenxiang State-owned Assets Management Investment Corporation, Zhuzhou Xiangjiang Construction and Development Group LTD and Hunan Yonker Environmental Protection Co., Ltd. respectively. Under such agreement, they will carry out in-depth cooperation centering on the areas including water area control, soil control and other environmental protection projects, with a view to boosting the construction of “Green Huxiang” and “Beautiful Star City”.
It is reported that, since the promulgation of “the Plan of Hunan for Implementing the Control of Heavy Metal Pollution in the Drainage Area of Xiangjiang River” in 2012, IB Changsha Branch has designed a variety of financial products in the area of water resource utilization and protection such as emission right pledge-based loan and contract environmental service according to the features of control projects in the drainage area of Xiangjiang River across the province, fulfilling the financing needs of customers with a number of innovated financial models. In June 2012, the branch granted the emission right pledge-based loan of RMB 16 million to Hunan Valin Xiangtan Iron and Steel Co., Ltd., thus finishing the first emission right pledge-based loan in Hunan. In December, it handled the first energy performance contracting (EPC) accounts receivable pledge based financing business, extending a loan of RMB 50 million to Jin Bai Da Energy Management Science & Technology Co., Ltd. In September 2013, the branch, in collaboration with Ping An Insurance, customized the “Ping An Insurance Capital Debt Investment Plan” for Zhuzhou Xiangjiang Construction and Development Group LTD, extending the loan, with a financing volume of RMB 1.2 billion and the term of 5.5 years, specifically to the heavy mental control project in the drainage area of Xiangjiang – the environment control project of Kibing Group for the old plant of glass production line. The business was the first project where insurance bond was invested in the control of water environment in China, providing a diversified financing channel for the control of heavy metal in the drainage area of Xiangjiang River across Hunan.
As disclosed by Chen Wei, President of IB Changsha Branch, by the end of the third quarter of 2013, the branch has accumulatively provided green finance based financing of RMB 11.8 billion to the projects of energy conservation and emission reduction across the province, with a financing balance exceeding RMB 6 billion. With business covering the areas including low-carbon economy, recycling economy and ecological economy, its green finance supported projects are mainly distributed in the following industries: power, chemical, steel and iron, non-ferrous metal, new energy, and water resource. In the future, he indicates, the branch will further intensify innovation in green finance, actively push forward the development of green economy in the province by way of green credit, green investment and green insurance, etc., and improve the development of regional green industry in the control of drainage area of Xiangjiang River, control of the area around Dongting Lake, and contract environmental service, in particular.
As learnt by the reporter, by the end of September of 2013, the financing balance of green finance of IB across China has reached RMB 169.289 billion, and the supported projects could save 23.2997 million tons of standard coal across the country each year, reduced 67.1684 million tons of carbon dioxide, 901,200 tons of chemical oxygen demand (COD), 16,700 tons of ammonia nitrogen, 43,600 tons of sulfur dioxide, and 11,300 tons of oxynitride, utilized 15.2174 million tons of solid waste in an integrated manner, and saved 255.8 million tons of water.