Recently, the National Association of Financial Market Institutional Investors (NAFMII) released the 2023 Green Debt Instrument Investors Ranking. Industrial Bank ranked first among the national joint-stock banks, making it a worthy “green banking”.
As a pioneer in domestic green finance, Industrial Bank has exerted the advantage of “commercial bank + investment bank” strategy and actively participated in the construction of green bond market, with the underwriting scale of green bonds of RMB 21.806 billion, remaining in the forefront of the joint-stock banks. At the same time, relying on the capital operation center, the Bank has continued to strengthen its investment in green bonds, with the cumulative investment in green CNY credit bonds of RMB 16.082 billion in the whole year of 2023, with year-end balance exceeding RMB 34 billion.
In 2021, the People’s Bank of China, the National Development and Reform Commission and the China Securities Regulatory Commission jointly issued the Green Bond Supported Projects Catalog (2021 Edition). The projects supported by green bonds cover six categories: energy saving and environmental protection industry, clean production industry, clean energy industry, ecology and environment-related sector, sustainable upgrade of infrastructure and green services. Under the guidance of the Catalogue, Industrial Bank has invested in the first Green Bonds for Leasing Companies, the first Sustainability-Linked Bond, the first “Three Green” Asset-Backed Medium-term Notes, the first Blue Bond and other first green bonds in the market. The funds raised have been used for green development projects such as ultra-low energy consumption building projects, offshore wind power installation vessel projects, and carbon neutral green building projects.
According to the introduction, Industrial Bank has optimized the allocation of internal resources, provided low-cost financial support for green bonds in the fields such as internal funds transfer pricing and actively promoted the rapid and healthy development of China’s green bond market.
In recent years, Industrial Bank has also actively explored the green bond market-making business to provide more liquidity for the green bond market and reduce the financing cost of green bond issuers. Meanwhile, it has increased innovation and taken the lead in the Credit Risk Mitigation Warrant (CRMW) business with green bonds as the underlying debt, playing an important role in promoting the green development of the real economy via green finance.
In addition, Industrial Bank also joined hands with the China Central Depository &Cleaning Co., Ltd. in 2017 to cooperate in compiling and releasing the China Bond-Industrial Bank Green Bond Index, which provides a new perspective for investors to participate in the green bond market, attracts more incremental capital to the green bond market, and provides assistance for the continued promotion of economic and social green transformation and development.
In terms of the application of indexes, recently Industrial Bank’s wealth management subsidiary, IB Wealth Management, has launched the first wealth management products linked to Industrial Bank Green Bond Index. In the future, Industrial Bank will continue to explore new products and modes of application of green bond indexes, so as to enrich the practice of green finance in China to explore new paths, and to open new chapters.
The relevant person in charge of Industrial Bank said that the Bank will conscientiously implement the spirit of the Central Financial Work Conference, actively implement the requirements of the Government’s work report, and continue to polish the “green banking” business card in the green low-carbon transformation of the service economy and society, and write a new chapter of Chinese-style modernization with high-quality services of green finance.