Shandong-province lender Bank of Qingdao has launched an initiative to permit the use of energy usage rights as collateral for financing.
On 12 May Bank of Qingdao provided Qingdao Nengyuan Redian Group (青岛能源热电集团) with 20 million yuan in financing that was collateralised with energy usage rights.
The deal reportedly marks the first time that a local legal person bank in Shandong province has collateralised a financing deal by means of energy rights.
Bank of Qingdao said the move is a “new breakthrough in environmental financing.”
“Bank of Qingdao has always upheld the concept of green development, actively drives green financial development, and will continually diversify green financial product supply,” said a spokesman for the lender.