Industrial and Commercial Bank of China, London Branch (ICBC), BNP Paribas & HSBC Sign Mandate Letter on Green Loan

Signing ceremony marks the first ever Green Loan Principles (GLPs) compliant loan facility for a Chinese Bank. The loan highlights ICBC’s commitment to further supporting the green economy transition and the development of Green Finance globally.

ICBC has appointed BNP Paribas and HSBC as joint Green Coordinators and Mandated Lead Arrangers, to arrange and manage an inaugural green loan for ICBC, London Branch. Under the Mandate Letter, the loan will:

• Be a Dual Currency Term Loan Facility (USD & GBP);
• Enable ICBC to raise up to USD 400m;
• Build on ICBC’s newly established Green Finance Framework.;
• Be used for green projects, in line with the Green Finance Framework, financed by ICBC, London Branch.

The loan complements ICBC’s existing extensive portfolio of sustainable financing initiatives:

• It was the first commercial bank in China to join the UN Global Compact in 2012 and joined the UN Environment Programme Finance Initiative (UNEP FI) in 2014.
• It is a member of the standing council of Green Finance Committee established under the China Financial Forum and is an active advocate of developing green finance in order to boost sustainable development.
• In 2017, ICBC issued its first Certified Climate Bond through its Luxembourg branch. The proceeds of this Green Bond were earmarked to finance and refinance a broad range of green assets.
• In 2018, ICBC issued its second Certified Climate Bond through their London Branch, which received the Green Bond Pioneer Award in 2019 and is currently the largest green bond listed on the London Stock Exchange.

Ruixiang Han, General Manager, ICBC said: “I am delighted to announce the launch of this exciting and innovative new transaction for ICBC London Branch. ICBC is a wholehearted advocate of green principles and takes its environmental responsibilities very seriously. We are sure that this latest ground-breaking financing initiative will be received successfully in the market and look forward to celebrating its successful conclusion.”

Alexandra Basirov, Global Head of Sustainable Finance, Financial Institutions Coverage, BNP Paribas said: “The signing of the Mandate Letter today represents a landmark moment for sustainable finance in China and reinforces BNP Paribas’ capacity to deliver solutions that align both the financing and sustainability strategies of our global institutional clients.”

Daniel Klier, Global Head of Sustainable Finance, HSBC said: “ICBC is the first Chinese bank to secure a Green Loan which complies with the Green Loan Principles. The Green Loan Principles were jointly launched by both European and Asian Loan Market Associations in March 2018 to provide a high level framework for the wholesale green loan market. The funding demonstrates HSBC’s commitment and dedication to the green loan market, which we are determined to support and develop. This is part of our commitment to provide $100 billion in sustainable financing and investment by 2025.”

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Industrial and Commercial Bank of China Limited (ICBC) is China’s largest commercial bank, a leader in the Chinese domestic market, with a strong customer base, advanced information technology, a diversified product range and operating domestically and internationally in upwards of 42 countries and regions with 412 institutions. In 2018, ICBC ranked in 1st place in the Forbes Global 2000, and 1st place in the 2018 Top 1000 World Banks in terms of tier-1 capital. ICBC Is also rated Best Bank in China by Euromoney (2018) and number one Commercial Bank by Fortune.

Established in 2003 in the City of London, ICBC (London) plc provides professional solutions to various clients’ needs. Industrial and Commercial Bank of China Limited London Branch was authorised by the Prudential Regulation Authority in 2014, and together with its 100% wholly-owned subsidiary, ICBC (London) plc (collectively referred to as the “Bank”), provides a range of regulated financial products and banking services to its UK, Chinese and international clients, including corporate customers, individual customers and financial institutions. The Bank has specialized teams to deal with Commercial Real Estate, Commodities and Structured Finance, Global Loan Syndications, Trade Finance, Project and Infrastructure Finance and Treasury solutions by offering hedging solutions for currency and interest rate exposure via Foreign Exchange products and Interest Rate Derivatives.

ICBC currently maintains long term foreign currency investment grade ratings of A1/A (Moody’s/S&P).

‘Integrity Leads to Prosperity’ is the core value behind ICBC’s long-term development, including integrity and diligence, prudence and compliance, innovation and excellence, endurance and dedication. To learn more about ICBC, please visit our website at www.icbclondon.com.