Date: November 1, 2013 Source: Strait News
Keynotes: It is well-known that real economy is the basis for the existence and development of human society. In the middle of this year, the State Council issued the “Guiding Opinion on Support of Finance to Structural Adjustment, Transformation and Upgrading”, stressing that the finance industry should, centering on the support of real economy, improve the allocation of financial resources to meet the financial needs during the development of real economy. At present, finance is supporting the transformation and upgrading of real economy and banks are increasing support actively to stand as solid backing for real economy.
As the bank developing the business of green finance at the earliest time in China, Industrial Bank (IB) has, taking as its own responsibility to serve the development of local economy, brought into play its advantages in technology and resource in the field of green credit for energy conservation and emission reduction as the first “Equator Bank” in China to lend vigorous support for the construction of ecological civilization in the Western Taiwan Straits. In serving the real economy and boost the development of small-sized enterprises, the bank has also kept making innovation in financial services to meet the needs of customers and push the new economic progress of the Western Taiwan Straits.
The innovative model of turning green to gold creates a blue sea for the business of green finance. Ecological environment is also a core competitive edge. In recent years, with the economic development and elevated strategic position of Pingtan Composite Pilot Zone, its urban construction has been accelerated continuously, and the environmental problem has also attracted increasing attention.
On February 27, the first loan of RMB 120 million was formally granted by IB Fuzhou Branch to the project of garbage incineration for power generation in Pingtan.
A refuse dump in Pingtan County, which is now a main place of the county to dispose the urban domestic garbage, has been put into operation 17 years till now. Owing years of operation, the construction standards of the refuse dump cannot meet the requirements of Pingtan in fast development. Not only does it have a great impact to the surrounding atmospheric environment, but it also pollutes surrounding ground water, surface water and soil.
Actively responding to the project of garbage incineration for power generation in Pingtan, IB Fuzhou Branch finally decided to grant special green finance based loans up to RMB 220 million to the limited company engaging in power generation through garbage incineration, for constructing the project of domestic garbage incineration for power generation.
In particular, what's worth noting is that IB Fuzhou Branch implemented the first Chinese CDM carbon assets pledge of hydropower station in 2011, which has been reported broadly by well-known media both at home and abroad including CCTV and Reuters.
In the future, IB Fuzhou Branch will settle the financing bottleneck of enterprises engaging in environmental protection and environmental services and energy conservation and emission reduction projects by making full use of the seven characteristic products of the Head Office including the financing for energy performance contracting (EPC) by using the future usufruct as the pledge.
Customized and upgraded multiplied financing services to boost the development of real economy
In order to lend a boost to the real economy, IB Fuzhou Branch has developed the business layout under the pattern of “one body with two wings”, providing diversified financing for customers and thus injecting funds into real economy enterprises in different forms. A state-owned group corporation under Fujian Province engages in principal businesses including coal, power, port logistics, building material, chemical for civil explosion, construction engineering and real estate and has more than 30 solely-invested and controlled enterprises including some listed companies. Along the corporate transformation and development, the group is in confrontation with increasingly urgent financing needs.
As learnt by the reporter, considering the financing needs of the group, IB Fuzhou Branch has won over the comprehensive credit line of RMB 10 billion for the group, with a risk exposure of not more than RMB 10 billion, to settle its needs of day-to-day operating capital. Finally, the branch successfully achieved bank-enterprise direct linkage with the finance limited company under the group and constructed a new group service platform, improving the company's cash management level.
Holding little hand with big hand to serve small- and mini-sized enterprises with products bringing them benefits and solving their problems
Supporting real economy, the bank is committed to offering services bringing benefits to people. IB adjusted the customer orientation of its corporate banking in an active manner at the beginning of this year, giving priority to providing financial services to small- and mini-sized corporate customers with assets totaling not more than RMB 60 million to give all-out boost to small- and mini-sized enterprises.
“I could only receive a loan over RMB 1 million by mortgaging my house ago, but this time I received a loan of RMB 4 million, which really meet my pressing needs!” the principal of a wood products limited company in Fuzhou exclaimed, “upon the critical stage, the considerate financial service of IB Fuzhou Branch gave us a boost!”
Mr. Huang established the wood products limited company in 2003. Mainly engaging in the manufacture and sale of bamboo and wood products, small furniture, and craftwork, the company mainly exports its products abroad via domestic foreign trade companies and furniture traders. Due to continuous expansion of its businesses in recent years, the customer size and sales volume of the company both witnessed significant growth. Meanwhile, with increasing investment in machines and equipment, its working capital became tense. Nonetheless, loan became a bottleneck for the further business development of Mr. Huang's company. His workshops were built by himself on a leased land plot, without house ownership certificate. He only has a house worth RMB 1.5 million available for mortgage, which is his only fixed asset that can be used for mortgage. The guaranteeing methods he has are limited and not strong.
After in-depth investigation and visit, IB Fuzhou Branch finished the examination and approval quickly and efficiently in the end, while Mr. Huang only took his house worth RMB 1.5 million for mortgage and another customer in the same industry provided the joint and several liability guarantee for the remaining line. Not before long, Mr. Huang smoothly received the loan for small- and mini-sized enterprise granted by IB, thus surviving the difficulties.
In addition, as learnt by the reporter, IB innovatively released the product of “Easy & Fast Loan” with a view to meeting the “short-term, frequent and urgent” financing needs of small-sized enterprises. Any small-sized enterprise can apply for such loan only by providing its corresponding assets such as personal residential house, industrial workshops and/or commercial premises. “The time limit for examination and approval is three workdays, and a loan of up to RMB 10 million may be granted”, said the relevant person-in-charge of IB Fuzhou Branch.
Now, IB has a service system including “IB Open Sesame”, IB Guarantee-assistant Loan, and IB Point-based Loan, becoming a powerful backbone for the fast business growth of small-sized enterprises.