Ping An Bank Fuels Yulin Chemical's Green Transition With RMB2.3 Billion Loan

Rhea-AI Summary

Ping An Bank, a subsidiary of Ping An Insurance Group (HKEX: 2318), has provided a RMB2.3 billion (USD 322 million) loan to Yulin Chemical to support its Coal Clean and Efficient Conversion Demonstration Project. The project, listed in the National Development and Reform Commission's 2024 Catalogue, aims to promote cleaner coal processing and align with China's low-carbon goals.

Since June 2022, Ping An Bank has provided a total of RMB3.44 billion (USD 481.6 million) in loans to the project. This initiative supports China's 'dual carbon' goals to peak carbon emissions by 2030 and achieve carbon neutrality before 2060. In the first three quarters of 2024, Ping An's green insurance premium income reached RMB37.34 billion. As of June 2024, the company's green investment of insurance funds and green loan balance stood at RMB124.88 billion and RMB164.63 billion respectively.

Positive

• Secured major green financing deal worth RMB2.3 billion (USD 322 million)
• Total green insurance premium income reached RMB37.34 billion in Q1-Q3 2024
• Substantial green investment portfolio of RMB124.88 billion in insurance funds
• Strong green loan balance of RMB164.63 billion

Negative

• None.

HONG KONG and SHANGHAI, Jan. 22, 2025 /PRNewswire/ -- Ping An Insurance (Group) Company of China, Ltd. (hereafter "Ping An", "the Company" or the "Group" HKEX: 2318 / 82318; SSE: 601318) announced that its subsidiary, Ping An Bank, has provided a RMB2.3 billion (equivalent to USD 322 million) loan to Shaanxi Coal Group's Yulin Chemical Co. Ltd. ("Yulin Chemical"). The financing will support Yulin Chemical's Coal Clean and Efficient Conversion Demonstration Project, which promotes cleaner and more efficient coal processing, aligning with China's low-carbon development goals.

The project is listed in the National Development and Reform Commission's 2024 Catalogue for Guiding Industry Restructuring. It uses advanced technologies to convert organic and inorganic sulfur into usable sulfur and repurposes slag, a byproduct of turning coal into a fuel gas, for building materials. This approach embodies a circular economy model of "reduce, reuse and recycle," maximizing resource use and minimizing environmental impact.

Since June 2022, Ping An Bank has provided a cumulative RMB3.44 billion (equivalent to USD 481.6 million) in loans to the project and will continue to offer financing support as construction progresses.

In light of China's "dual carbon" goals to peak carbon emissions by 2030 and achieve carbon neutrality before 2060, high-carbon industries face significant pressure to transition to more sustainable practices. This transition presents a substantial funding gap, estimated to reach RMB487 trillion (equivalent to USD 68.2 trillion) over the next 30 years, an average of approximately RMB16 trillion (equivalent to USD 2.2 trillion)^[1] annually. Traditional high-carbon sectors, such as coal power, steel and cement, often struggle to secure financing for these critical upgrades, despite having transition plans.

As an extension of green finance, transition finance plays a crucial role in facilitating industrial upgrades and ensuring stable economic growth. Guided by Ping An's green finance strategy, Ping An Bank seeks to provide funding for projects with significant carbon reduction potential, particularly in sectors with high emissions or those facing challenges in direct emission reduction.

"We are delighted to partner with Yulin Chemical in developing cleaner and more efficient coal conversion technologies," said Ping An Bank. "This project underscores our commitment to driving a green transition and sustainable development. We will continue to innovate in our financial services and support outstanding enterprises like Yulin Chemical to achieve China's dual carbon goals and industrial upgrades."

Ping An has integrated green finance in its Group-level strategy, leveraging its comprehensive financial services capabilities. In green insurance, Ping An provides risk protection and enhances risk reduction management for green industries. In green credit, Ping An Bank optimizes its credit structure and capital allocation based on low-carbon principles. It supports a green transition and environmental upgrades in traditional sectors such as coal power, steel and chemicals. In green investment, Ping An leverages the long-term and stable nature of insurance funds to meet the financing needs to develop a green, low-carbon, and circular economy. Through collaboration among its investment, asset management and securities businesses, Ping An has fully integrated environmental, social and corporate governance (ESG) factors in its investment management requirements.

Ping An's green finance business continues to grow. In the first three quarters of 2024, Ping An's green insurance premium income reached RMB37.34 billion (equivalent to USD 5.2 billion). As of June 30, 2024, Ping An's green investment of insurance funds and green loan balance reached RMB124.88 billion (equivalent to USD 17.5 billion) and RMB164.63 billion (equivalent to USD 23.0 billion), respectively.

About Ping An Group

Ping An Insurance (Group) Company of China, Ltd. (HKEx:2318 / 82318; SSE:601318) is one of the largest financial services companies in the world. It strives to become a world-leading provider of integrated finance, health and senior care services, Under the technology-driven "integrated finance + health and senior care" strategy, the Group provides professional "financial advisory, family doctor, and senior care concierge" services to its 240 million retail customers. Ping An advances intelligent digital transformation and employs technologies to improve financial businesses' quality and efficiency and enhance risk management. The Group is listed on the stock exchanges in Hong Kong and Shanghai. As of the end of September 2024, Ping An had more than RMB12 trillion in total assets. The Group ranked 29^th in the Forbes Global 2000 list in 2024 and 53^rd in the Fortune Global 500 list in 2024. 

For more information, please visit www.group.pingan.com and follow us on LinkedIn - PING AN.

[1]Transition Finance Needs Financial Instrument Support (Source: China Banking and Insurance News Network) - http://www.cbimc.cn/content/2024-04/03/content_513214.html

Note: 1 RMB equivalent to 0.14 USD (according to the currency rate as of 22 Jan 2025)

 

View original content:https://www.prnewswire.com/news-releases/ping-an-bank-fuels-yulin-chemicals-green-transition-with-rmb2-3-billion-loan-302357229.html

SOURCE Ping An Insurance (Group) Company of China, Ltd.

FAQ

What is the value of Ping An Bank's latest loan to Yulin Chemical (PNGAY)?

Ping An Bank provided a RMB2.3 billion (USD 322 million) loan to Yulin Chemical for its Coal Clean and Efficient Conversion Demonstration Project.

How much has Ping An Bank (PNGAY) invested in Yulin Chemical's project since June 2022?

Since June 2022, Ping An Bank has provided cumulative loans of RMB3.44 billion (USD 481.6 million) to Yulin Chemical's project.

What is Ping An's (PNGAY) green insurance premium income for Q1-Q3 2024?

Ping An's green insurance premium income reached RMB37.34 billion (USD 5.2 billion) in the first three quarters of 2024.

What is Ping An's (PNGAY) total green investment and loan balance as of June 2024?

As of June 2024, Ping An's green investment of insurance funds was RMB124.88 billion and green loan balance was RMB164.63 billion.

How does this loan align with China's carbon goals for PNGAY investors?

The loan supports China's 'dual carbon' goals to peak carbon emissions by 2030 and achieve carbon neutrality by 2060, positioning PNGAY in the growing green finance sector.