Industrial and Commercial Bank of China (ICBC) has recently issued the first tranche of green corporate bonds worth RMB 2.5 billion for BAIC Motor Corporation LTD, which represents China’s first green corporate bond and the first green corporate bond underwritten by China’s commercial bank. It not only further expands green financing channels for enterprises but also carries strong implication to the establishment of China’s green finance system.

As the co-lead underwriter and financing coordinator, ICBC has leveraged its specialized market judgment, product innovation capabilities and multi-leveled sales channels to issue bonds for and granted loans to the issuer, which has effectively helped enterprises expand their financing channels and reduce costs.

An ICBC official said that ICBC has been actively implementing the concepts of “green development” and “green finance”. As early as 2007, it took the lead among domestic peers in formulating and implementing “green credit” policies and carrying out green operation. It has been committed to the integration of economic, social and ecological benefits. Stronger support has been provided to outperforming enterprises and projects that are environmentally-friendly and energy-saving. It has stopped cooperation with enterprises with high energy consumption, outdated technologies and process as well as excessive production capacity. All these efforts have promoted the “green adjustment” to the whole Bank’s credit structure. At the end of 2015, its loan balances in green economic areas (such as ecological protection, clean energy, energy saving, environmental protection and comprehensive resource utilization) was about RMB 915.3 billion, accounting for 13% of total corporate loan balance. The growth rate of such loans was 9.3 percentage points higherr than that of the corporate loans over the same period. More loans are granted to areas such as green transportation, and renewable and clean energies. The loan balances present a strong growth momentum for industrial energy-saving, water-saving and environmental-protection projects and in the areas of resource recycling, and energy-saving and environmental-protection services. Meanwhile, it has been proactively adapted to the rapid development trend of direct financing and leveraged its group-wide advantages in bond underwriting, financial leasing, investment banking and multi-licensed financing business to satisfy the demands of green economy for financing through diversified channels and methods.