On January 5, 2016, the total amount of 2.6457 billion yuan Industrial Bank green credit asset securitization successfully issued and received subscription over 2.5 times. This is also the first successfully issued domestic green credit assets backed securities in 2016.
According to Dai Xiaoyuan, the general manager of IB Investment Banking Department, the underlying asset pool of this green financial credit asset-backed securities comes from 42 loans of 29 borrowers, all of which are quality green finance loans that strictly selected from IB's loan base, covering pollution control, energy conservation and environmental protection energy-saving, resource recycling, environmental protection equipment manufacturing, and other public facilities management. The investment direction of the projects complies with the "Green Bonds Support Program Directory" recently issued by PBOC and relevant green credit statistics standards stipulated by CBRC.
"The funds released from such green credit asset-backed securities will be invested to key energy saving and environmental protection fields.” Fang Zhiyong, the general manager of IB Environmental Finance Department said, the bank hopes, by using a variety of financial instruments like green credit asset-backed securities and financial bonds (to raise funds earmarked for green financial sector) to guide social resources to invest in the field of energy saving and pollution reduction, thus contributing to the "Beautiful China". Data show that as of the end of 2015, the financing balance of the Industrial Bank's green finance reached 394.195 billion yuan, increasing 98.201 billion yuan over the beginning of the year.
As one of the banking group with the most financial licenses, the Industrial Bank has listed green finance as one of the group's seven core businesses, and it will further strengthen the coordination and innovation of green finance in all business lines and between parent companies and subsidiaries.
"Green credit asset securitization is one of the series results in promoting group-oriented development of green finance. We will continue to deepen innovation practice of green finance, strengthen institutional construction of green finance, and implement the transformation from 'green bank' to 'green financial group',” said Fang Zhiyong.