IFC Signed Energy Efficiency Risk-sharing Agreement with Bank of Beijing

June 1, 2007 – Today the IFC signed a risk-sharing agreement with the Bank of Beijing to help the bank develop its market access to finance energy efficiency projects. IFC Executive Vice President and CEO, Mr. Lars Thunell and Mr. Yan Bingzhu, Chairman of the Board of the Bank of Beijing (BOB), attended the signing ceremony. Mr. Thunell and Ms. Yan Xiaoyan, BOB President, signed the agreement at the ceremony.

According to the agreement, the IFC China Utility-Based Energy Efficiency Finance Program (CHUEE) will provide a risk-sharing facility of 130 million Chinese renminbi ($17 million), enabling Bank of Beijing to leverage an overall loan portfolio of 300 million renminbi ($39 million) in energy efficiency (EE) projects. Most of the lending will go to energy service companies and energy efficiency project owners for implementing EE projects, such as industrial boiler retrofitting, wasted heat recovery, implementation of co-and tri-generation projects in district heating, power saving and optimization of industrial energy use.

As the second partner bank of the CHUEE program, Bank of Beijing’s investments in energy efficiency are an opportunity to add value to its clients and contribute to efforts to reduce greenhouse gas emissions. In his speech, Mr. Yan Bingzhu commented: “We are very pleased to have the IFC as our strategic partner and would like to continue strengthening our partnership in the future.”　

At the press conference afterwards, Mr. Thunell remarked: “We are delighted to support Bank of Beijing’s growth in the energy efficiency finance market because it is good for business and good for the environment.” With the implementation of the CHUEE program, BOB will obtain technical assistance from the IFC on small and medium-size enterprise (SME) credit rating, risk pricing, cash-flow analysis, and due diligence for EE projects. This assistance is expected to improve BOB’s SME financing to meet international standards and become more professional. BOB will implement the EE projects in Beijing and Tianjin to address the increasing energy consumption and environment pollution brought on by the urbanization and modernization in the two cities. BOB expects to support the development of the Olympic and urban economy.

Bank of Beijing is the first city commercial bank to partner with the IFC and the energy efficiency finance program in China. This agreement also positions CHUEE as a leading player in China’s banking industry. The IFC expects to use this partnership as a catalyst in the development of similar energy efficiency projects by other financial institutions in China.

About Bank of Beijing

Founded in January 1996, Bank of Beijing is a joint-stock commercial bank with a shareholding structure of overseas investors and numerous well-known enterprises. It has 125 sub-branches across Beijing and a business outlet in Tianjin. In 2005, Bank of Beijing introduced the ING Group and the IFC as its overseas strategic investors. In 2006, the Bank of Beijing opened its branch in Tianjin city, marking a significant step in trans-regional development. Its operational and management indicators have all reached international levels. In the Global Top 1,000 Banks List issued by The Banker in 2006, Bank of Beijing ranked 262 in terms of total assets, the highest among more than 110 domestic city commercial banks in China. The ranking reflects the bank’s position as a midsize international player in the banking industry. For more information visit www.bankofbeijing.com.cn.