In Beijing
Huan Ni (Helen)
Telephone: + 86 10 5860 3262
Email: HNi@ifc.org
In Hong Kong
Name: Andrew Mak
Telephone: +852 2509 8183
Email: AMak@ifc.org
In Washington D.C.
Lucie Giraud
Telephone: +1 202 458 4662
Email: LGiraud@ifc.org
IFC Helps China’s Industrial Bank Support Cleaner Production and Reduce Carbon Dioxide Emissions
Beijing, February 12, 2007—IFC, the private sector arm of the World Bank Group, today approved the first loan under the IFC China Utility-Based Energy Efficiency Program. Industrial Bank, the CHUEE program’s initial banking partner, will disburse its first energy efficiency loan to Shandong Dongying Shengdong Machinery Company Limited, which will use the 16 million RMB ($2.1 million) financing to install power generation facilities on behalf of its client, Shanxi Haizi Coking Group Company Limited, located in Shanxi Province. The generators will use waste coking gas from Shanxi Haizi’s facilities, supporting the use of clean production techniques and reducing carbon emissions.
The generators’ use of waste coking gas from Shanxi Haizi’s facilities will reduce carbon emissions and the environmental impact on one of China’s most polluted provinces. The estimated total reduction of carbon dioxide will be 22,000 tons per year, or 220,000 tons over the project’s 10-year span.
“As a national commercial bank, we have a responsibility to provide suitable and competitive financial products that support and promote development of the energy-saving and environmental protection industries in China,” said Chen Dekang, Vice President of the Industrial Bank. “We will speed up the marketing promotion of this innovative energy efficiency financing product.”
Unlike conventional loans provided by commercial banks in China, Industrial Bank’s energy efficiency loan uses a unique security structure which includes recognizing cash-flow from energy savings in the security package.
“As a sustainable investor in the private sector, we are pleased to work with Industrial Bank to address China’s pressing energy consumption challenges,” said Richard Ranken, Director of IFC’s East Asia and Pacific Department. “I hope this first loan encourages other Chinese commercial banks to look into the energy efficiency market and work with private companies who have traditionally had limited access to finance.”
About the IFC China Utility-Based Energy Efficiency Program
Funded by IFC, Global Environment Facility and the Finnish government, the China Utility-Based Energy Efficiency Program is a new energy efficiency financing program designed by IFC at the request of China’s Ministry of Finance, to stimulate investment in energy efficiency and clean energy projects. The goal is to reduce emissions of greenhouse gases by creating a sustainable financing mechanism for small and medium enterprises to invest in energy efficiency projects. IFC cooperates with Chinese commercial banks and offers them a facility whereby IFC shares part of the loss for all loans within the energy efficiency portfolio. The program also provides advisory services on marketing, engineering, project development, and equipment financing services to banks, project developers, and suppliers of energy efficiency products and services. The program operates under the IFC Private Enterprise Partnership for China. For more information visit www.ifc.org/chuee
