INDUSTRIAL BANK CO., LTD

Adoption Date: 31 October 2008
Country of Headquarters: China
Region of Headquarters: Asia
Institutional Reporting Hyperlink:

http://download.cib.com.cn/netbank/download/cn/Sustainable_Finance/report_2016en.pdf

Current EPFI Reporting Year/Period: 2016
EPFI Reporting in Compliance: Yes

 

Please read the important notes and disclaimer for further information on 'EPFI Reporting', compliance and publication on the Equator Principles Association website.


Further information on this EPFI may be obtained through the Institutional Reporting Hyperlink above.


PROJECT FINANCE ADVISORY SERVICES


Total number mandated in the reporting period: 0

PROJECT FINANCE TRANSACTIONS


Total number that reached financial close in the reporting period:
3

Totals
1
2
0
Sector
Category A
Category B
Category C
Mining


Infrastructure


Oil & Gas


Power 1 1
Others
1
Region
Category A
Category B
Category C
Americas


Europe, Middle East & Africa


Asia Pacific 1 2
Country Designation
Category A
Category B
Category C
Designated1


Non-Designated 1 2
Independent Review
Category A
Category B
Category C
Yes 1 2
No


Totals
1
2
0

1Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment. For the list of Designated Countries, go to: http://www.equator-principles.com/index.php/ep3/designated-countries


PROJECT NAME REPORTING FOR PROJECT FINANCE TRANSACTIONS

No. Project Name
Sector
Host Country Name/ Project Location Year of Financial Close
1 Wind power plant with 150,000 kilowatts in Wolong Cave Pinglu District Power China 2016


2 projects were not disclosed as per the disclosure conditions specified in Annex B of the Equator Principles.


PROJECT-RELATED CORPORATE LOANS


Total number that reached financial close in the reporting period: 7

Totals
0
7
0
Sector
Category A
Category B
Category C
Mining


Infrastructure
3
Oil & Gas
2
Power


Others
2
Region
Category A
Category B
Category C
Americas


Europe, Middle East & Africa


Asia Pacific
7
Country Designation
Category A
Category B
Category C
Designated1


Non-Designated
7
Independent Review
Category A
Category B
Category C
Yes
7
No


Totals
0
7
0

1Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment. For the list of Designated Countries, go to: http://www.equator-principles.com/index.php/ep3/designated-countries


IMPLEMENTATION OF THE EQUATOR PRINCIPLES

Professional support system achieved breakthroughs in upgrading

In 2016, the Bank formally launched the industry’s first independent research and development green financial professional support system, leading the same industry with electronic operations. This system has complete functions and strong expandability, which can realize three functions: the first is identification of green finance attributes, environmental benefits measurement, customer management and other business management functions; the second is handling of credit business of green finance, review of the Equator Principles, credit management after loan, risk monitoring and other risk management functions; the third is evaluation, performance measurement, group management, resource allocation, report form statistics, information document management and other operation management functions. With the help of this system and through the customer classification management and business data mining and analysis, deeply explore the customer needs and further enhance the efficiency and ability of the Bank to serve green financial customers.

Strengthen the cooperation with external professional bodies

In 2016, the Bank continued to strengthen the cooperation and communication with Environmental Resources

Management (Shanghai), Environ (Shanghai), PricewaterhouseCoopers (Shanghai) and other professional technology companies specializing in environmental and social risk evaluation to better carry out due diligence, environmental and social risk evaluation and other work of the Equator Principles project to ensure the smooth progress of the review of the Equator Principles project.

Carry out the training on publicizing and implementation of the Equator Principles

In 2016, there were 72 trainings on the Equator Principles throughout the whole bank with the total number of participants of more than 3,900 and cumulative time of about 6,000 minutes. The Bank strived to carry out team capacity construction and organized the person in charge of Green Finance Functional Department and business backbones to conduct training on the Equator Principles through on-site exchange meetings, video and other ways, focusing on the applicable scope of the Equator Principles, review requirements, review process and institutional system and other relevant contents to carry out the centralized publicizing and implementation for promoting the further improvement of professional skills of personnel related to the green finance of branches.

Continue to promote international exchange of experience

As an EPFI, the Bank actively participated in the Equator Principles convention and quarterly conferences of EPFIs in Asia Pacific for the consultation and discussion on the evaluation standards and applicable scope of real estate projects and carbon information disclosure and so on, absorbing the good experience of international advanced EPFIs to be used for perfecting the Bank’s internal policy and management. The Bank invited the chairman of Canadian Association for Development of Environmental Finance and professor of University of Waterloo Olaf Weber to introduce the research results about the sustainable development of banks and performance quantization of the Equator Principles so that the Bank can learn from the international advanced research results to further deepen the theory and practice of the Equator Principles.

Equator Principles project data

In 2016, the Bank implemented judgment of applicability of the Equator Principles for 72 projects and identified 49 projects where the Equator Principles are applicable, which involves a total investment of RMB 581.332 billion, 49 customers, 24 national standard industries. And 10 projects where the Equator Principles are applicable had reached financial close in the reporting period (signing of financing contracts), including 3 project finances and 7 project-related corporate loans and another 10 project loans were released, including 3 project finances and 7 project-related corporate loans for a total amount of RMB 6.725 billion.

Project Finance Transactions

In 2016, the Bank had 3 project finances in effect, including 1 in category A and 2 in category B and the projects are all in China (i.e. non-designated countries), which are mainly in hydroelectric generation, wind power generation and other industries; for all effective Equator Principles projects, an independent third-party environmental and social counseling agency was hire to assist in the due diligence investigation and evaluation of project compliance with the Equator Principles.

Project-related corporate loans

In 2016, the Bank had 7 project-related corporate loans that are in category B in effect and the projects are all in China (i.e. non-designated countries) and an independent third-party environmental and social counseling agency was hire to assist in the due diligence investigation and evaluation of project compliance with the Equator Principles.

For more detail, please see the hyperlink to our bank's public reporting: http://download.cib.com.cn/netbank/download/cn/Sustainable_Finance/report_2016en.pdf