Beijing, December 6, 2010—IFC,
a member of the World Bank Group, has raised $150 million for China WindPower
Group and its wind farm in the country’s northwestern province of Gansu
to support climate-friendly wind-power development in China.
IFC has organized a debt facility of $140 million for the project, including
a $45 million loan for its own account earlier this year and $95 million
in syndicated loans from Intesa Sanpaolo ($35 million), Societe Generale
($35 million), and Rabobank ($25 million). This marks China’s first
wind-power deal financed entirely through international bank syndication.
IFC has also taken a $10 million equity stake in China WindPower to help
the company expand its business, including outside China such as in Africa
“IFC’s knowledge of international best practice and ability to offer
customized financing will enable us to succeed and expand in this growing
sector,” said Shunxing Liu, Chairman of China WindPower.
China WindPower will use IFC’s financing to build its first wholly owned
201-megawatt plant in Gansu, one of China’s poorest provinces. Located
in the Gobi desert, a terrain favorable to wind projects, the plant is
part of a plan to develop initially 3.8 gigawatts of electricity from wind
power in the province and to reach ultimately up to 10 gigawatts—equivalent
to roughly one third of the installed wind-power capacity in the United
States in 2009.
“IFC’s investment in China WindPower will help avoid over 420,000 tons
of carbon-dioxide emissions every year in one of China’s poorest Western
regions,” said Hyun-Chan Cho, IFC’s Country Manager for China and Mongolia.
“In China, we focus on addressing the climate-change challenge through
renewable-energy development, cleantech investments, as well as innovative
energy-efficiency financing such as China Utility-based Energy Efficiency
Listed in the Hong Kong stock exchange three years ago, China WindPower
is a fast-growing, entrepreneurial firm committed to developing top-quality
clean energy in China, the world’s fastest growing wind market. It
produces wind turbine towers and designs, builds, and maintains the wind
farms for itself and other wind-power developers.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.