Green-labelled BG provides a gateway to Europe for Yutong
Published: Feb 2026
Best Sustainable Treasury Solution
Highly Commended Winner
Yutong Bus Co., Ltd.
Ms. Chang Yu
Finance Manager
Yutong Bus Co., Ltd. is a major Chinese manufacturer specialising in R&D, production and sales of buses and coaches, including new energy vehicles.
in partnership with
The challenge
With the Paris climate agreement in force, the European Union (EU) is more committed than ever in its transition towards a low carbon economy. One of the key levers to realise the ambition is the upgrading of public transportation systems to make them cleaner and more energy efficient. Against this backdrop, leading European public transport authorities have indicated a strong push for alternative‑powered buses, which means the EU transportation operators need to upgrade their fleets quickly by importing EV buses. Yutong was well-positioned and is at the forefront to partner these EU transport operators in meeting the ambitious targets.
However, clean transport requires the operators to invest huge CAPEX which requires external funding from banks. Yutong’s sales term is 15% in advance with the balance 85% cash on delivery. A bank guarantee (BG) was required to secure the advanced payments and the supply of goods and financing banks want to ensure that funds are utilised for their rightful purposes.
The solution
Working with BNP Paribas (BNPP), Yutong established transferable, green-labelled bank guarantees for >€200m issued for the sale of 500+ Yutong EV Buses in the Nordics.
The BG was structured considering all parties’ concerns and interests, from the European transport operators (buyers), involved financing banks and Yutong, to facilitate the transaction and protect the interests of all parties.
Key features of the solution include:
Upon availability of the official EU approval certificate for the EV bus model, the BG would be labelled as Green BG.
Transferable BG containing specific clauses to embed a transferable mechanism that closely mirrors the underlying contract.
Securing the rights of the financing banks to make a claim on the BG, in case the usage of funds did not comply with the pre-agreed purpose. This protects all parties’ interests, ensuring the actual usage of funding complies with the requirements of the financing bank.
Best practice and innovation
This is a scalable and flexible win-win solution for Yutong, the European buyers and the financing banks, through an unfunded product; a green-labelled BG supported by EU Authority approval certificate and impact reporting requirement.
This is the first green-labelled BG implemented for Yutong by BNPP incorporating the following:
Commitment to enhance sustainability causes – in line with the Paris climate agreement objectives, this transferable BG will contribute to the growth of clean transportation in Europe, whilst eliminating operation risk on the financing bank, to ensure that funds are utilised for the pre-agreed purpose. This transaction enables the European transport operators to import the required products with ease.
Leveraging BNPP’s ability to handle complex deal types – Yutong was able to achieve all sales collections in advance and on-time products delivery, whilst ensuring all parties interest and requirements were met.
A gateway to Europe – leveraging on the bank’s strong network and expertise especially in the European market with a wide network of trade finance experts, BNPP provided seamless access to the European network and market knowledge to facilitate and accompany Yutong’s growth in Europe.
Scalable – the green-labelled BG facility extended to Yutong allows for issuances of BGs to any EU transport operators.
Alignment with market standards for green transactions – BNPP has worked extensively with Yutong on the adherence to green loan principles in all aspects of the green BG, keeping the process as simple as possible.
Key benefits
Process efficiencies.
Risk mitigated.
Improved visibility.
BNP Paribas is honoured to be Yutong’s primary banking partner, delivering value added trade solutions that support the development of Yutong’s innovative green transport technologies and reinforce its market position across Europe. This partnership deepens collaboration and drives joint innovation, taking the BNP Paribas-Yutong relationship to new heights.
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