Case Studies » Guangzhou Development Industry Holdings
Guangzhou Development Industry Holdings
Project Name: Guangzhou Development Industry Holdings
Country: China
Highlights:
Local currency loan provided to Municipally controlled company out of proceeds of a domestic bond issued by IFC.
About the Company:
GDIH is a holding company owning power generation assets in the Guangdong Province, China. It is controlled by the Guangzhou Municipal Government.
Financing objective:
The objective of IFC’s involvement is (1) to help the company finance its capital expenditure program and (2) to provide technical assistance that seeks to improve the energy efficiency and reduce the emissions of GDIH’s power plants.
The structure of the project :
IFC’s investment consists in a RMB405 million (US$50 million equivalent) senior secured corporate loan to Guangzhou Development Industry (Holdings) Co., Ltd. The local currency was obtained from the proceeds of IFC's first "Panda" bond issue.
The outcome :
GDIH was able to receive local currency financing for priority investments that matched its local currency revenue stream. The project improved the environmental performance of GDIH's power generation assets.
