Deutsche Bank helps Huaneng Leasing with sustainable trade finance aligned to China’s Common Ground Taxonomy

Deutsche Financial institution introduced that it has helped Huaneng Tiancheng Monetary Leasing Co., Ltd (“Huaneng Leasing”) launch a 3-year CNY187 million account receivable financing facility.

The deal marks Deutsche Financial institution’s first sustainable commerce finance transaction aligned to the Frequent Floor Taxonomy (CGT), with the Use of Proceeds to finance Huaneng Leasing’s direct leasing for 2 wind energy growth tasks in China. This transaction falls below State of affairs 1 outlined within the CGT with clear overlaps between EU and China inexperienced taxonomies that may be thought-about comparable inside the scope/for the aim of the CGT  . The transaction additionally aligns to UN Sustainable Growth Objectives 7 and 9, associated to Renewable Power and Infrastructure growth.

“Huaneng Leasing has been a long-standing consumer of Deutsche Financial institution China, with a transparent dedication to offering complete monetary companies that help clear vitality growth. We’re honored to behave because the lender in financing Huaneng Leasing and these essential clear vitality tasks. The transaction demonstrates how we help our purchasers’ sustainability transition by harmonizing the various inexperienced finance requirements between totally different markets”, stated Peter Qiu, President of Deutsche Financial institution China. “Leveraging our experience and expertise in ESG and inexperienced finance framework design, Deutsche Financial institution is uniquely properly positioned to assist purchasers in China to attain their ESG targets.” 

Upon completion, whole inexperienced electrical energy capability of the 2 wind energy tasks would attain 100MW altogether, producing 270m kWh inexperienced electrical energy per yr which shall cut back over 0.226m tCO2e. of GHG per yr.

The underlying wind farm tasks have additionally been partially financed by senior money owed from Asian Growth Financial institution (ADB) below the multilateral establishment’s Inexperienced Financing Platform, following ADB’s Environmental and Social Administration System (“ESMS”) necessities.

“Profitable execution of ESG transactions in China which meet international ESG requirements is crucial for bridging the remaining gaps between Chinese language ESG   requirements and worldwide ESG taxonomies,” stated Kamran Khan, Head of ESG for Asia Pacific at Deutsche Financial institution.  “That is essential for Asia and the worldwide ESG market as a result of China’s inexperienced finance market is likely one of the largest on this planet.  This Huaneng Leasing transaction exemplifies Deutsche Financial institution’s give attention to executing world-class, benchmark-setting ESG transactions in Asia.”     

Deutsche Financial institution had dedicated to facilitate 200 billion Euros in sustainable financing and funding by the top of 2025 however has now turn into extra formidable, bringing the goal ahead to yr finish 2022, after the financial institution already reached 157 billion Euros by the top of 2021.

Jinyan Wang, Vice President of Tiancheng Monetary Leasing stated: “With the imaginative and prescient of being a robust practitioner and one of the best performer within the industrial finance sector, we’re dedicated to the constant innovation and growth of a complete monetary service mannequin for the clear vitality trade. Driving on the development of narrowing gaps between China’s inexperienced finance guidelines and worldwide requirements, we proceed to advertise the mixing of our inexperienced finance practices with home and international inexperienced finance requirements. We’re additionally deeply concerned in constructing the inexperienced leasing system, proactively collaborating within the main inexperienced finance requirements programs globally, and exploring alternatives in sustainable growth and ESG. Along with companions equivalent to Deutsche Financial institution, Tiancheng Leasing will proceed selling the sustainable growth of the clear vitality trade by carefully integrating trade experience with modern monetary merchandise. ”

Worldwide buyers have been delicate to variations in requirements and approaches to inexperienced financing in international markets, and have sought extra readability and a unified method. With the intention to tackle this want, the Frequent Floor Taxonomy- (CGT) was revealed by the Worldwide Sustainable Finance Platform (IPSF) Taxonomy Working Group Co-chaired by the EU and China in November 2021. The CGT is a key milestone in offering readability concerning the commonality and variations between the EU’s and China’s inexperienced taxonomies. It’s anticipated to play a pivotal function in growing comparability of sustainable finance taxonomies and definitions of inexperienced and/or sustainable actions globally.

For additional data, please contact:

Deutsche Financial institution AG

Media Relations

Flora Tian

Tel. +86 10 5969 8617
E mail flora.tian@db.com