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| China Environment Fund III, L.P. |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 26288 |
| Company name | China Environmental Fund III, L.P. |
| Country | China |
| Sector | Collective Investment Vehicles |
| Environmental category | FI |
| Department | Private Equity and Investment Funds |
| Status | Active |
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| Date SPI disclosed | April 16, 2008 |
| Projected board date | May 29, 2008 |
| Previous Events | Invested: February 18, 2009
Signed: December 11, 2008
Approved: July 17, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| China Environment Fund III, LP (CEF III or the Fund) is a 10-year closed-end private equity fund formed by Tsing Capital Co., Ltd (Tsing Capital or the Manager), which is seeking up to $250 million in capital commitments to make equity and equity-linked investments in resource efficiency and environmental sustainability sectors in China. |
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| Project sponsor and major shareholders of project company |
| Tsing Capital is a pioneer investor in climate change in China, having established the first dedicated cleantech fund in 2002. The Manager comprises 10 investment professionals led by Don Ye, Patrick Tam, Shelby Chen and Austin Jieh, who bring skills and experiences in environmental science, venture capital investing and company operations. |
| Total project cost and amount and nature of IFC's investment |
| IFC proposes to make an equity investment of up to $15 million, not to exceed 20% of the Fund’s total commitments. |
| Location of project and description of site |
| CEF III is formed as a Cayman Islands exempted limited partnership. Tsing Capital manages its operations from its office in beijing, china. |
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| Anticipated development impact of the project |
An IFC investment in CEF III is expected to deliver the following development impact:
- Improve access to under-supplied risk financing and operational guidance for private companies with innovative environmental technologies.
- Accelerate the growth of renewable energy and energy efficiency, thereby helping China cope with energy shortage and environmental deterioration.
- Promote better corporate governance, environmental and social practices at the Fund and its investee companies. |
| IFC's expected development contribution |
IFC’s expected development contribution includes:
- Increase the Manager’s chance of success by transferring IFC’s global knowledge and experience in cleantech, renewable energy and energy efficiency financing.
- Help the Manager establish and maintain a Social and Environmental Management System, and promote the practice of sustainable investing and better corporate governance.
- Provide co-financing to complement CEF III’s investment and allow investees to achieve greater success.
- Enhance the Manager’s credibility, mobilize long-term institutional capital to CEF III and similar climate change funds. |
| Environmental and social issues - Category FI |
This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.
During appraisal, IFC will analyze the Fund’s expected portfolio and sectors of investment and determine the Applicable Requirements if any, that would include a combination of:
- The IFC FI Exclusion list; and/or
- The applicable National Social and Environmental Laws and Regulations; and/or
- The IFC Performance Standards.
IFC will also review, if required, the capacity of the Fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). IFC may suggest Supplemental Actions to address any gaps in the SEMS if required.
The Fund Manager will be required to:
- Develop, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC,
- Identify responsible, qualified persons to manage and implement the SEMS,
- Commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Requirements,
- Take action to remedy any gaps in SEMS implementation on an ongoing basis, and
- Submit a periodic report to IFC as per a format to be provided by IFC. |
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| For inquiries about the project, contact: |
Mr. Patrick Tam, General Partner
Tsing Capital Co., Ltd.
A2302, SP Tower
Tsinghua Science Park
Beijing 100084, China
Telephone: +86-10-8215-1160
Fax: +86-10-8215-1150 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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