Xiong'an launches Hebei's first green cross-border debt

The first green cross-border debt pilot program in Hebei province has recently been launched in Xiong'an New Area, marking a step forward in linking global green capital with local low-carbon development.

Hebei Lyuyuan Geothermal Energy Development, based in Xiong'an, secured a 50-million-yuan ($7 million) loan from the Bank of Communications, Macao Branch, of which 10 million yuan is designated as green debt, according to the State Administration of Foreign Exchange's Xiong'an branch.

The green portion will be used for geothermal energy development projects in Xiong'an to support the area's green development.

The overall green debt pilot program, launched by the State Administration of Foreign Exchange in 16 provinces and cities in August, encourages domestic non-financial enterprises to channel cross-border funds into projects that meet the green finance or low-carbon transformation standards set by the People's Bank of China and other authorities.

Compared with traditional foreign debt, the green version offers advantages such as reduced impact on the company's cross-border financing quota and simplified procedures handled directly by banks, saving time and costs for enterprises, the administration's Xiong'an branch said.

The branch worked with local development reform and financial institutions to facilitate the deal and provide enterprises with policy guidance and streamlined services.

Moving forward, the branch will continue to improve foreign exchange services and promote more convenient cross-border investment and financing to support green financial development in Xiong'an, it said.