Hengfeng Bank: Enriching the Green Finance Toolkit to Paint a New Picture of Ecological Development

Green waters and lush mountains are as valuable as gold and silver mountains. Under the guidance of the “dual carbon” goals, green finance is becoming an important engine for promoting comprehensive green transformation of the economy and society. Hengfeng Bank precisely aligns with regional development needs, stepping beyond the traditional single-credit “blood transfusion” model, deeply integrating investment banking expertise, and using innovative financial tools such as green syndicates and green bonds to inject financial “fresh water” into enterprises’ green transformation and urban ecological construction. In Jiangsu, a distinctive new path for green financial services has been explored.

Green Syndicates Unite to Improve Logistics Hub Upgrades

(Wuxi West Station Logistics Park Scene)

Within Wuxi West Station Logistics Park, containers are neatly lined up, and freight trains depart on five lines—China-Europe connecting trains, sea-rail combined trains, cage wagons, the Greater Bay Area railway trains, and the China-Kazakhstan-Ukraine corridor trains converge here, with an annual throughput exceeding 10 million tons. As Wuxi’s only national logistics hub, it is not only Jiangsu’s “sea-rail pre-positioned container base” but also a key node in regional economic circulation.

As business volume surges, upgrading the park’s intelligent systems, expanding rail lines, and dredging port channels are urgent. Traditional credit models, with their large investment scale and long return cycles, are difficult to fully match—bank credit limits are limited, and loan terms cannot cover the entire project construction and operational return cycle.

Recognizing this need, Hengfeng Bank’s headquarters and branches work efficiently together, with specialized service teams conducting on-site research, accurately assessing project pain points, and proposing green syndicate loan solutions. The bank also takes the lead in balancing risk preferences, credit policies, and project needs across different financial institutions to form a collaborative service effort. After multiple rounds of coordination, a green syndicate loan of 213 million yuan was successfully disbursed on the first day of 2026. The funds are precisely injected into key areas of park renovation, providing strong momentum for high-quality regional logistics industry development.

Green Bonds Empower Accelerated Deployment of New Energy Equipment

At the construction site of XCMG Group, a leading manufacturer of engineering machinery, rows of fully electric tractors, concrete mixer transport trucks, and dump trucks are ready to go. Their zero emissions and low noise make them the “green new favorites” in construction and urban logistics. As new energy vehicles rapidly develop, the financing needs of end-users and the industry chain continue to grow. Xuzhou XCMG Engineering Machinery Leasing Co., Ltd. has seen rapid growth in business deployment and urgently needs to expand financing channels and stabilize funding sources.

As a long-term financial partner supporting the green transformation of manufacturing, Hengfeng Bank’s Nanjing branch analyzed the company’s business model and found that providing short-term working capital loans under traditional thinking would not match the leasing business’s repayment cycle nor unlock the value of existing assets. After precise assessment, the team based its green medium-term note financing plan on the underlying assets of the leasing projects—electric construction vehicles and power battery boxes—both of which have stable cash flows and significant carbon reduction benefits.

Issuance of green bonds requires strict third-party evaluation and certification. How to demonstrate the “green content” of the underlying assets? The branch repeatedly communicated with China Chengxin International, an authoritative institution in green bond evaluation, helping the company improve green project screening standards and carbon reduction measurement models. Ultimately, a 2-year green medium-term note of 600 million yuan was successfully issued, earning the highest G-1 green rating from China Chengxin, with funds specifically used for leasing new energy equipment. It is estimated to save nearly 20,000 tons of standard coal annually and reduce over 50,000 tons of CO2 emissions, effectively revitalizing existing assets and accelerating the market entry of new energy equipment.

Proactive Service Nourishes the Water-Beautiful City’s Livelihood

(Wuxi Huishan District Qianzhou Street)

Underground pipelines are the city’s “capillaries,” directly affecting the quality of life for thousands of households and urban water safety. The underground pipeline network in Qianzhou Street, Huishan District, Wuxi, is aging, with issues such as leaks and insufficient drainage capacity, making upgrades urgent. As a typical livelihood ecological project, this initiative involves large investment and does not produce immediate economic benefits, but its social and environmental benefits are significant. It is an important measure for Wuxi to build a “water-clear, bank-green” water-beautiful city.

Hengfeng Bank’s Nanjing branch breaks the single standard of “only commercial return,” starting from the perspective of serving livelihoods and ecological construction. It actively provides front-line services and deeply participates in early planning and financing design. The dedicated team repeatedly communicates with project parties to clarify funding needs and project progress, designing a green syndicate plan with a maturity structure closely aligned with the project’s cash flow characteristics. Recently, a 200 million yuan green syndicate loan, with Hengfeng Bank participating, was successfully disbursed. After funding, the team continues to follow up, helping optimize the project’s fund usage plan to ensure every penny is used precisely for the pipeline renovation. This financial “water” is quietly nourishing the city’s underground “capillaries,” helping to create a water-clear, bank-green ecological landscape and improving residents’ well-being.

The “14th Five-Year Plan” explicitly calls for accelerating the comprehensive green transformation of the economy and society, promoting carbon reduction, pollution control, green expansion, and growth. Going forward, Hengfeng Bank will continue to deepen efforts in ecological civilization, urban renewal, and green development, enriching and improving a diversified green financial product and service system—including green credit, green bonds, climate investment and financing, green deposits, and green leasing—and continuously upgrading its green financial “toolbox” to contribute Hengfeng’s strength to the full green transformation of the economy and society and the rapid development of a beautiful China.

(Prepared by: Investment Banking Department, Head Office; Nanjing Branch)

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