Green development boosted by efforts from Qilu Bank

Recently, the 2024 Shandong "Haopin Financial" list was officially released, and the "Low Carbon Benefit Loan" product submitted by Qilu Bank was selected for the list of excellent green financial products. The aim of this event is to focus on the five major areas of financial technology, green finance, inclusive finance, pension finance and digital finance. It recommended innovative financial products introduced by various financial institutions.

Currently, the Chinese economy is at a crucial period of transitioning from high-speed growth to high-quality development. In this context, green finance, as a key tool and means to promote sustainable economic and social development, is of significant importance. As the first urban commercial bank in Shandong province, Qilu Bank has achieved strong results in the innovation and development of green financial products. In June 2023, to fully utilize and benefit from Shandong province's carbon reduction policy tools and increase preferential loans in the green and low-carbon fields, Qilu Bank introduced the Low Carbon Benefit Loan product.

Guided by the national policy of resource conservation and environmental protection, Qilu Bank has been following the development concept that "lucid waters and lush mountains are invaluable assets", and targeting key areas such as green clean energy, green low-carbon transformation, green ecological agriculture and green ecological governance. The bank has been supporting emerging industries and boosting the formation of new quality productive forces.

Solar power has significant environmental, energy-saving, and economic benefits and is a key lever to help create new quality productive forces. However, many companies involved in the solar power industry chain are in the early stages of development, facing challenges such as long investment cycles, lack of collateral and insufficient initial capital. A new energy company in Shandong’s Dongying, established in 2022, engaged in the construction and operation of a 3.2-megawatt rooftop distributed solar power project. Utilizing a factory roof of 23,400 square meters as the site, its expected annual electricity generation can reach 3.58 million kilowatt-hours. Upon learning that the client urgently needed financial support for the new project, Qilu Bank immediately sent out staff members for on-site coordination. Leveraging the advantages of the green financial working group mechanism and a green approval channel, the bank quickly approved a 10-year project loan of 9.4 million yuan ($1.29 million) for the company and secured them preferential rates by utilizing a carbon reduction refinancing rate compensation mechanism. The bank’s effort reduced the company's financing costs.

Since 2023, Qilu Bank has disbursed more than 75 million yuan to distributed solar project loans in Dongying Economic and Technological Development Zone, reducing carbon dioxide emissions by approximately 10,616 metric tons annually. The effort achieved ecological, social and economic benefits.

Qilu Bank said it will continue to explore and innovate services to meet the green transformation financing needs of various entities. Currently, the Low Carbon Benefit Loan business of Qilu Bank has exceeded 10 billion yuan, covering areas such as solar power equipment manufacturing, road greening construction, maintenance management, rural drinking water safety projects and more. As a special credit product created by Qilu Bank to support the green and low-carbon development of small and micro-enterprises, private enterprises and individual businesses, the Low Carbon Benefit Loan product effectively meets users' financing needs in energy conservation, carbon reduction, low-carbon transformation and green development processes. It has received positive feedback in the market and plays an active role in promoting sustainable social and economic development.

Green development, as the tone of high-quality development, sees banks not only play a major role in green investment and financing but also serve as a key force in promoting the high-quality development of green finance. Faced with the new mission by financial institutions, Qilu Bank said it will serve the national green strategy well, meet the actual needs of enterprises and build a good system among the environment, customers and the bank. The bank will strive to explore new paths for the development of green finance for urban commercial banks in the new era.