ICBC Sichuan Successfully Executes Province's First Green Foreign Debt Pilot Transaction

On December 18, under the guidance of the Sichuan Branch of the State Administration of Foreign Exchange and its Bazhong Sub-branch, ICBC Sichuan Branch, in collaboration with ICBC Macau, facilitated the province's first green foreign debt pilot transaction for a Sichuan-based energy company. This achievement marks seamless policy implementation and operational execution, signaling a new phase in cross-border financial support for green industry development in Sichuan.

The energy company, a leading natural gas operator in Southwest China with advanced equipment and technology, specializes in LNG production and scattered gas recovery. Its operations span procurement, storage, transportation, and sales, playing a pivotal role in regional energy supply stability. Due to prepayment requirements for gas procurement, equipment maintenance, and seasonal inventory needs, the company faced periodic liquidity shortages. The cross-border funds raised through this green foreign debt pilot will be fully allocated to high-quality natural gas feedstock purchases, effectively bridging the liquidity gap and ensuring supply chain stability.

The transaction's swift execution reflects dual drivers: policy support and innovative structuring. The green foreign debt pilot policy reduces the risk conversion factor for green projects to 0.5, significantly expanding cross-border financing capacity. Meanwhile, streamlined bank-handled debt registration enables one-stop account opening and currency settlement, enhancing convenience.

Ahead of the policy launch, ICBC Sichuan formed a dedicated team to leverage the bank’s global network and tailor financing solutions. ICBC Macau contributed low-cost cross-border funding via mature offshore financial markets. This model not only mitigates exchange rate risks and lowers financing costs but also integrates domestic and international financial resources, channeling policy benefits directly to the real economy.

This transaction exemplifies ICBC Sichuan’s commitment to green finance and cross-border innovation. Moving forward, the bank will deepen collaboration with its global affiliates, refine green financing products, and support more eco-friendly enterprises with cost-efficient solutions, fueling Sichuan’s "dual carbon" goals and sustainable industrial growth.