Beijing, China (Photo courtesy of Henry Chen)

China offers banks cheap funding for lending to green firms

The central bank is willing to lend 60% of the required funds at a 1.75% rate.

The People’s Bank of China (PBOC) will lend cheap funding to banks for loans to firms that are working towards the country’s goal of reducing carbon emissions, reported Bloomberg, based on a statement released by the central bank.

The central bank said that it will lend 60% of the required funds at an interest rate of 1.75%. Banks can then use the money to provide loans at around the level of the loan prime rate.

Also read: China deems 19 banks 'too big to fail'

The financing aims to support companies in clean energy, energy-saving and environment-friendly sectors, as well as those with carbon emission reduction technology.

The funding is especially aimed at supporting earlier-stage firms.

PBOC will require public disclosure of the use of the loans and quantification of the emissions reduced with the funding.

Here’s more from Bloomberg.

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

He rejoins Maybank from RHB, where he served as group managing director.
Muenkel was ING’s head of APAC for sustainable finance and GCM.
DBS will pay Citi in cash for the net assets plus a premium of S$956m.
The new Maybank2u SG (Lite) app offers e-angbao gifting and other money management features.
Capital will be used to develop cross-border services and push sustainability strategy.
Twenty banks are already live and have access to 24/7 real-time credit transfers.
All accounts under UCPB will be transferred under Landbank.
The public is urged to examine banknotes carefully after using a machine.
The second phase of the test will be carried out until 22 June.
OJK clarified that supervision of crypto is under Babbepti and the Ministry of Trade.
Strong anti-COVID measures allowed the market to reduce the pandemic’s impact.
The rate of their bad loans has hovered around 10% to 10.5%.
Darren Beatty has worked for the institutional banking teams of Westpac and CBA. 
Inconveniences in overseas travelling may reportedly turn away much-needed talent.