Industrial Bank : IB Helped with the IPO of Haixia Environmental Protection Co., Ltd. Through Green Finance

In the morning of February 20, Fujian Haixia Environmental Protection Group Co., Ltd. (hereinafter called 'Haixia Environmental Protection') was listed in Shanghai Stock Exchange and successfully entered the capital market. As a partner for many years, Lin Hong, head of Yangqiao General Office of Corporate Finance Business of IB Fuzhou Branch had the honor to be invited to Shanghai Stock Exchange by Haixia Environmental Protection to witness such a wonderful moment.

'Behind our successful listing, there is IB's support.' In addition to acceptingthe congratulation, a senior manager of Haixia Environmental Protection expressed gratitude to IB for long-term support.

Haixia Environmental Protection, a leading company in sewage treatment industry in Fujian province, completed reform of joint-stock system in 2014. With several patents, it specializes in municipal sewage treatment, industrial sewage treatment, landfill leachate treatment, water treatment and restoration, town sewage treatment as well as sludge and solid waste treatment.

Haixia Environmental Protection made a successful transformation with the help of finance, leaving other companies in the same industry in admiration. For more than a decade, in accordance with the business philosophy of 'Growing Together with Sincere Service' and needs of different phases of Haixia Environmental Protection, IB Fuzhou Branch takes advantage of comprehensive operation, continues to make innovations in service, and offers a package of comprehensive and customized financial services to Haixia Environmental Protection such as credit, settlement, payroll service, financial leasing and asset securitization.

In September of 2016, IB Fuzhou Branch provided financing of RMB 46 million for green finance projects of Fujian Langqi Haixia Environmental Protection Co., Ltd., a subsidiary of Haixia Environmental Protection. This fund adopted benchmark interest rate and was targeted at construction of BOT projects of Langqi Sewage Treatment Plant. In the near future, IB will start cooperation on projects with another two subsidiaries of Haixia Environmental Protection-Fujian Qingkou Haixia Environmental Protection Co., Ltd. and Fujian Lanyuan Haixia Environmental Protection Co., Ltd.

Early in 2003, IB Fuzhou Branch has established comprehensive partnership with Fuzhou Yangli Sewage Treatment Plant, the predecessor of Haixia Environmental Protection, offering services including opening settlement accounts and payroll service.

At the end of 2011, IB took advantage of local group and comprehensive services, provided financial leasing of RMB 0.15 billion through IB Financial Leasing Company, a member of IB Group, for purchase of sewage treatment equipment (stage Ⅲ) of Yangli Sewage Treatment Plant.

In September of 2015, Haixia Environmental Protection was in the IPO stock-into-market tutorship period. In order to support Yangli Sewage Treatment Plant in supplementing working capital of project construction (stage Ⅳ), IB Fuzhou Branch took assets of stage Ⅰ and Ⅱ in operation of Yangli Sewage Treatment Plant as basic assets, designed asset securitization plan for Haixia Environmental Protection, and granted line of credit of RMB 0.3 billion. Meanwhile procedures of mortgage and pledge were simplified and requirements of complex certificates about construction in process were reduced, thus funds were at enterprise's command and it can be well-prepared for listing.

Thanks to the financial support from IB, Haixia Environmental Protection started from urban sewage treatment and water environment treatment, and now it developed into a large comprehensive environmental protection enterprise and listed group with several patents and 11 subsidiaries, covering landfill leachate treatment, water treatment and restoration, town sewage treatment as well as sludge and solid waste treatment.

As of the end of 2016, IB Fuzhou Branch has offered green financial services and a total financing balance of RMB 12.35 billion to hundreds of energy saving & environment protection enterprises and projects in Fuzhou city including Haixia Environmental Protection. These are only epitomes showing that IB practices green finance and boosts green enterprises.

As the earliest bank that develops green finance, IB has explored green finance for years, formed a full set of sophisticated green finance product service system and become a deserved leader of green finance in China. A growing number of enterprises are becoming the beneficiaries of IB's comprehensive green financial services and enjoy a package of green financial services including green financing, green leasing, green trust, green fund as well as green investment.

By the end of December 2016, IB has accumulatively granted green finance of over RMB 1 trillion for more than 10 thousand energy saving & environment protection enterprises and projects and the financing balance has amounted to nearly RMB 500 billion.