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50B Green Fund of Industrial Bank Boosts the Pilot Zone of Green Finance Reform in Guizhou

During the “Guiyang International Seminar on Ecological Civilization Pilot Zone 2017 - Green Finance Development Seminar” held on June 17, 2017, Industrial Bank (IB) and Guizhou Provincial People’s Government signed a strategic cooperation agreement in which IB promises to provide various kinds of green financing, totaling RMB 50 billion, to Guizhou province during the “Thirteenth Five Year Plan” to support the construction of Guizhou national pilot zones for ecological civilization and green finance reform and innovation.

Both parties will cooperate efficiently to jointly boost the structural reform of supply side, accelerate the green transformation and upgrade of traditional industries, promote the development of high-end and intelligent machinery manufacturing, greatly facilitate the development of green energy and mountainous tourism, speed up the harnessing of hydraulic facilities and eco-system, thus creating a “Guizhou Mode” featuring fast growing economy, prominent ecological advantages and advanced social harmony.

“The essence of the structural reform of supply side is to reduce useless supply and enlarge useful supply. The criteria on the purpose of supply more and more count on ecological environment. Green finance plays a bigger role correspondingly.” Tao Yiping, the president of IB, delivered the importance of green finance in his keynote speech given in the forum.

He believes that green finance can make a difference in the current structural reform of supply side. Surrounding on “three removal, one reduction and one improvement” (the removal of production capacity, inventory and leverage, the reduction of cost and the improvement of weak links), on one hand it may help traditional industries upgrade the greening, upgrade the technologies and change the way of business growth pertinently, so as to fulfill the requirements of green development and get reborn from difficulties by reducing capacity and inventory; on the other hand, it will boost green and environmental industries to develop. At the meantime, on the course of serving the entity economy, banks can also achieve innovation in green finance business, perfect the infrastructure construction in green finance, and help enterprises further remove leverage and reduce cost.

“As a fully licensed financial group, IB boasts complete portfolio of green finance, extensive product line and broad service scope. Take the example of equity financing, by now we have participated in 40 green funds and offered a large amount of long-term and low-cost funds for an array of green projects.” Tao Yiping said.

As one of the first national pilot zones for ecological civilization, Guizhou Province is now approved to be a pilot zone for China’s green finance reform and innovation. According to the Strategic Cooperation Agreement about Intensifying Green Finance Cooperation and Facilitating the Big Ecology Strategy signed by IB and Guizhou Province, both parties will cooperate based on the construction needs requested by the Guizhou National Ecological Civilization Pilot Zone, the Big Poverty Alleviation Action and the National Bid Data (Guizhou) Comprehensive Experimental Zone, promote a green, low-carbon and environmental-friendly development mode in Guizhou with the idea of innovation, coordination, openness and sharing, facilitate the industrial upgrade and lead social funds to flow into green industries such as big data, big ecology and big tourism.

By adhering to the cooperation concept of “combining mind, fund and business”, IB will exert its edges of multiple financial licenses to provide Guizhou with multi-facet financial services covering investment, loan, bond, leasing, trust, fund and securities, contribute its professionalism and wisdom to the prosperity of green economy and the implementation of green development concept in Guizhou. With all-rounded and deepened cooperation, mutual development will eventually be achieved.

Established in September 2012, IB Guiyang Branch has been devoted to planting “green” in Guizhou in the past five years. Targeting the needs of different clients, the bank has released multifarious financial products and services and built up a green finance service system in alignment with the energy-saving and environmental-protection industry. Green finance business involves multiple sectors such as electricity, traffic, water, coal, chemical and energy-saving & environmentally-friendly products. The business scope covers energy efficiency enhancement, new energy and renewable energy, resource recycling, pollution prevention & control and etc. By the end of May 2017, IB Guizhou Branch has accumulatively provided RMB 13.5 billion of green financing for enterprises, with the balance of RMB 11.9 billion. The green finance business is overspreading in Guizhou.

According to the agreements signed between IB and Guizhou government, IB will mainly support the green finance reform and innovation in Gui’an New District and help to build a multi-layered green finance organization system, a diversified green finance product and service system and a multi-tiered policy supporting system. While releasing more green loans, IB will further the innovation and implementation of green fund, green trust, green bond, green leasing and green retail products. Meanwhile, IB will actively communicate with other peers, share its professional experience and successful cases in green finance for the past ten years as China’s first equator bank, and boost the green development for financial institutions in Guizhou.

On that day IB also signed a strategic cooperation agreement with Gui’an New District, according to which IB will provide various kinds of green financing products, totaling RMB 20 billion, for Gui’an New District during the “Thirteenth Five Year Plan” to mainly support the development of The Sponge City, water resource utilization and protection, eco-tourism and green travel projects and sectors in Gui’an New District.