A Case Study Of Green Asset-backed Security Of China Industrial Bank

Since the reform and opening up,China's economy make a spurt of progress in growth,but at the same time,there are also some environmental problems which is the potential risks of China's development,the government is more and more strict with the environmental protection.In the 13 th Five-Year Plan,the concepts of “innovation,coordination,green,opening and sharing” are mentioned.It is the first time that “green” becomes an important development principle.Under this circumstance,there is a vital chance for the promotion of China's green finance.As a kind of green financial instruments,green asset-backed securities have appeared in recent years,bringing new ways of financing for the “green enterprise”,which could actually reduce the difficulty and cost of financing.This can be easily achieved through structured arrangement and other ways to increase credit.But there are still many jobs undone in making the most use of green asset-backed securities market in China.As a matter of experience,commercial bank play an important role in green finance development.In view of the fact that the Industrial Bank is one of the pioneers of Chinese green finance,this paper takes the issue of the Industrial Bank green asset-backed securities as a case study,which has certain theoretical value and practical significance.Based on introduce of the Industrial Bank green asset-backed securities case,Firstly,this paper analyzes the agent of expanding green asset-backed securitization.Secondly,this paper analyzes the structure of green asset-backed securitization of industrial bank from five parts,including participating institutions,basic assets,internal credit,duration management and rate,in order to explore different structures of the products.Thirdly,from perspectives of enterprise and society,an analysis of the pricing situation the impact of Green Industrial Bank to issue asset-backed securities after success is given.On the basis of this case study,this paper summarizes its specific shortcomings,short duration,incomplete information disclosure,no green rating certification,and extra issuance cost.Finally,some policy suggestions are put forward in view of current situations of green asset securitization,including raising funds to strengthen management,improving the green rating certification system,and encouraging investment in green industry.