“Supporting the “Belt and Road” Initiative is our duty and an essential task for the banking industry to fulfill social responsibility and facilitate the development of real economy.” said Zhang Huachong, CEO of Chang’an General Office of Corporate Finance Business of IB Xi’an Branch, on the Conference for Release of 2015 CSR Report for Chinese Banking Industry and the Commendation for Corporate Social Responsibility of China Banking Association (CBA) recently.
For active participation in setting up “Silk Road Golden Fund” and strong support for Shaanxi “Belt and Road” develoment strategy, IB won “Annual Corporate Social Responsibility Award for Special Outlets” and was the only financial institution in Shaanxi province that got this award.
In 2014, strategic direction for building a new starting point for the Silk Road Economic Belt in Shaanxi became gradually clear and various financial institutions took an active part, becoming an important force in promoting construction of the “Belt and Road”. IB succeeded in promoting to launch “Silk Road Golden Fund”, serving as a bank sample to serve construction of the “Belt and Road”.
Push forward “Silk Road Golden Fund” and create an all-win situation
The first move of Chang’an General Office of Corporate Finance Business of IB Xi’an Branch is to participate in launching “Silk Road Golden Fund” of major strategic significance and industrial value.
“‘Silk Road Golden Fund’ has great significance for all-win cooperation in golden industries between countries and regions along the ‘Belt and Road’.” Such words concerning the strategic significance of the fund appeared in a speech made by Wei Minzhou, member of the standing committee in Shaanxi provincial committee and secretary of municipal Party committee at the nineteenth Investment and Trade Forum for Cooperation between East&West China in 2015 when “Silk Road Golden Fund” was officially established. “Silk Road Golden Fund” was scheduled to have a scale of RMB 100 billion, and was co-funded by Shandong Gold Group, Shaanxi Gold Group, IB and Western Securities, of which IB’s capital occupied 20%. The fund was aimed to, through development and operation management of gold resources in countries along the Silk Road, activate cross-border gold trade, entrepot and transactions, give expression to financial attribute of gold, boost the internationalization of RMB, strengthen China’ s influence on pricing, and enhance the radiation force of the “Belt and Road” Initiative.
After the “Belt and Road” Initiative was launched in 2015, IB Xi’an Branch made a quick response. Its Chang’an General Office and other relevant departments set up a “Belt and Road” research group and led the formulation of an overall business development plan for “Belt and Road” regions, laying a solid foundation for “Belt and Road” financial services. After ensuring the fund was set up in Xi’an, Chang’an General Office actively coordinated with the headquarter, made careful deployment and elaborate preparation about the preliminary work of the fund, and participated in planning, designing and formulating the fund.
“After the fund was set up, Chang’an General Office can offer the fund custody service and relevant payment and settlement service. When the fund sets up its sub-sector funds or sub-product funds, Chang’an General Office will deploy its resources to assist the fund in finding out a goal for the merger business of sub-sector funds and in seeking and seizing priority fund,” introduced Zhang Huachong. Meanwhile, IB Xi’an Branch will increase asset investment in key industries and clients in the region and offer an assortment of emerging equity financial services including traditional credit, trade financing, cash management, bond issuance and industrial fund.
Serving the “Belt and Road” and render timely service
At present, Shaanxi “Belt and Road” is under construction, and Chang’an General Office keeps abreast of new programs and renders timely service.
“When we are faced with the capital problem, IB offers us the most critical help!” Shaanxi Province Scrapped Automobile Recycling Co. Ltd. is a state-owned automobile recycling company. Its general manager Jiang Xiaodong told the journalist that the company has a good prospect but there’s a lack of capital for various reasons. It was Chang’an General Office that helped the company overcome the problem by coordinating with a financial leasing company in Shanghai, so the company can run smoothly. At present, the company can dismantle 60 cars of various kinds per day and over 20 thousand cars per year, and plays a positive role in regulating automobile dismantling industry, improving eco-environment and ensuring the development of circular economy in Shaanxi.
As an important carrier for implementing the “Belt and Road” Initiative, Chang’an General Office also serves several key programs in Xixian New Area. In 2016, Chang’an General Office employed diversified means to provide a financing of RMB 2.875 billion. Due to efficient service and active service consciousness, it was praised by Xixian New Area Rail Transit Investment and Construction Co., Ltd. Furthermore, Chang’an General Office also supports development and utilization of water resources in Xixian New Area and provided a financing of RMB 600 million for Kun Ming Pool project of Xi’an Kun Ming Pool Investment and Construction Co., Ltd., thus ensuring smooth running of the project. When learning that Shaanxi province planned to build a new air travel investment group, Chang’an General Office made contact with relevant departments to formulate a financing plan for this project.
Green finance greens the “Belt and Road”
Zhang Huachong introduced that Chang’an General Office, originally IB’s Xi’an West Chang’an Street Branch, upholds IB’s principle of green development since the beginning of its corporate banking. After converting into General Office of Corporate Financing, it makes clearer its development of green finance and is among the first batch of “Department of Green Business”. Its sub-department was also designated as environmental finance group by Xi’an Branch.
On December 8, 2011, Zizhou storage, peak regulation and liquefaction program of Yulin Jinyuan Natural Gas Co., Ltd., Xi’an Branch’s first financing to which the Equator Principles was applied, was officially started. “IB has a complete set of green finance service plan, indicating a good prospect for sustainable development in clean energy industry. So I choose the Equator Principles was applied to the program,” said Ma Weiqiang, Board Chairman of Jinyuan Group. Due to IB’s critical promotion in the Group’s corporate transformation, he determined to develop clean energy and the Group avoided being hit by economic downturn.
On December 15, 2011, comprehensive utilization of natural gas program of Jingbian County Xilan Natural Gas Liquefaction Co., Ltd., IB’s first program to which the Equator Principles was applied on a voluntary basis, was officially started. Till now, Chang’an General Office has provided nearly a hundred loans for energy conservation and emission reduction totaling RMB 1.5 billion for clients including Xi’an Xilan Natural Gas, Yulin Jinyuan Natural Gas and Yulin Jiaxian County Tianbao. Recently Chang’an General Office promoted medium-term notes business of RMB 1 billion for Xi'an LONGI Silicon Materials Corp., the largest solar energy bar and silicon materials manufacturer in the world, and strongly supported the development of new energy industry.
Shaanxi Environmental Protection Industry Group is the first provincial environmental protection industry group in China, covering the entire environmental protection industry chain. As the sponsor, IB Xi'an Branch provides basic credit limit of RMB 6 billion in order to support the Group’s environmental protection industry projects including pollution and emission reduction, prevention and control of water pollution, improvement in the quality of atmospheric environment, comprehensive treatment of rural environment and solid waste recycling, and vigorously sustain the Group’s influential role as a provincial environmental protection industry platform.