Dongguan launches green bill rediscount business

The People’s Bank of China Dongguan City Sub-branch successfully handled the rediscount of 149 million yuan for green bills for China Merchants Bank Dongguan Branch and Guangfa Bank Dongguan Branch, Chinanews.com reported recently.

The People’s Bank of China Dongguan City Sub-branch successfully handled the rediscount of 149 million yuan for green bills for China Merchants Bank Dongguan Branch and Guangfa Bank Dongguan Branch, Chinanews.com reported recently.

According to reports, it will benefit 55 companies, and the discounted bill’s weighted average interest rate is as low as 2.89%, which will help the development of green finance in the Guangdong-Hong Kong-Macao Greater Bay Area.

On April 24 this year, the People’s Bank of China and other four ministries and commissions jointly issued the “Opinions on Financial Support for the Construction of the Guangdong-Hong Kong-Macao Greater Bay Area”, proposing to promote green financial cooperation in the region and promote the development of green finance.

Subsequently, the People’s Bank of China Dongguan City Central Sub-branch issued the “Notice on Starting Rediscount Business of Green Bills” to provide low-cost policy funding for financial institutions to increase green industry, green enterprises, and green project bill financing through rediscount tools.

According to the introduction of the sub-branch, by establishing a green bill rediscount fast channel, the bank will give priority to satisfying the needs of the green bill rediscount quota of bank institutions and handle it quickly. After receiving the bank rediscount application this time, the rediscount funds were issued within 2 days.

China Merchants Bank Dongguan Branch offered a discounted financing rate of 2.40% by recommending online discount products to an insulation material company in Dongguan City, which was nearly 30BP lower than the market interest rate, and the discounted funds were received in seconds.

With the support of the People’s Bank of China’s re-discount funds, China Merchants Bank Dongguan Branch has handled a total of more than 50 million yuan in discount financing for the company since 2020.

Since the beginning of this year, the banking institutions in Dongguan have increased their support for green economic activities. It is estimated that Dongguan’s green loan balance at the end of June will be about 40 billion yuan, an increase of about 15% from the beginning of the year.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/07/14/dongguan-launches-green-bill-rediscount-business/.

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