OREANDA-NEWS. July 25, 2013. ICBC has provided loans and financial services for construction of low-income housing units nationwide over the past few years. Through a full range of financial services, ICBC loans provide necessary funding for large key low-income housing projects. Since 2011, ICBC has provided loans and underwritten private placement bonds to support low-income housing construction, to a sum of over RMB 75 billion.

ICBC steps up the management and embraces innovation in an aim to provide excellent financial services for construction of low-income housing units. First, ICBC offers a wide variety of loans for construction of affordable housing, low-rent housing and public rental housing, as well as renovation of dilapidated houses in urban areas. Meanwhile, ICBC restricts lending to commercial property projects and extends more loans for low-income housing projects, despite heightened macro control and tight liquidity.

The Bank also uses financial instruments such as private placement bonds to raise funds for the construction of low-income housing units. Since 2011, ICBC acted as main underwriter for 7 issuers: BBMG Corporation, Zhongguancun Development Group, Beijing Public Housing Construction Center, Beijing Enterprises Group Company Limited, China Construction Eighth Engineering Division, Shanghai Urban Construction (Group), Nanjing Housing Construction Group. ICBC topped the league tables in Beijing, Shanghai, Nanjing by underwriting to a total of RMB 48.2 billion.

An ICBC executive said, lending support to low-income housing projects is significant to improve the living conditions of low-and-mid- income families, reshape urban environment and provide more job opportunities. An example is the renovation of dilapidated houses in Guiyang's Pengjia Bay, a housing project that ICBC participates and supports. Pengjia Bay, the largest "village within a city" with rows of dilapidated houses in Guiyang, lies between the city and suburb. Before renovation, the area was littered with badly-planned, unlicensed construction and aging buildings, no fire safety, no public security.

The project was included in 2010 plan for renovation of dilapidated houses in Guiyang's Nanming District. Under unified planning, the whole area was renovated into a residential zone with the best infrastructure and most complete facilities in Guiyang. After renovation, former residents live in a better environment. The area can also be easily expanded to accommodate around 110,000 people to live. Over 400,000 square meters packed with public buildings, commercial offices and hotels drive the economic development in the area, bringing more job opportunities besides addressing the issues in people's everyday life.