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MNI BRIEF: PBOC Unveils Long-Awaited Green Lending Tool

(MNI) London
SINGAPORE (MNI)

The People's Bank of China said on Monday that it will encourage banks to lend to companies in key low-carbon sectors at rates equivalent to benchmark Loan Prime Rates, and that the PBOC will relend 60% of the amount provided at 1.75%.

Lenders will have to provide collateral against the relending , which will provide money for one year and which can be extended twice, the PBOC said on its website, announcing details of its long-awaited green financing facility.

The fund will focus on green energy, environment protection, energy saving and decarbonisation technology, the statement said.

Banks must provide loans in a market-oriented and legal way, and provide quarterly information to regulators and the public including the use of the funds, the amount of carbon reduction, and weighted-average rates, the central bank said.

MNI London Bureau | +44 203-865-3829 | jason.webb@marketnews.com
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MNI London Bureau | +44 203-865-3829 | jason.webb@marketnews.com
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