Hong Kong, SAR, China, October 8, 2010—IFC,
a member of the World Bank Group, has made a $75 million equity investment
in Xinjiang Goldwind Science & Technology as part of the wind turbine
manufacturer’s initial public offering on the Hong Kong stock exchange
to support the fight against climate change and promote the use of wind
generated electricity in China.
“IFC is a corner stone investor for us and they were instrumental in making
this IPO a success,” said Goldwind Chairman and CEO Mr. Gang Wu. “IFC’s
substantial engagement sent a signal to other investors and is helping
us to adopt best international corporate governance well as environmental
and social standards in areas such as biodiversity and land acquisition.”
According to Goldwind, the IPO raised about HK$6.8 billion ($877 million)
in net proceeds for the wind turbine manufacturer headquartered in China’s
Xinjiang Province, one of the country’s frontier regions.
The Chinese government has made reducing the carbon intensity of its energy
supply a priority in response to the global threat of climate change. The
country’s current energy supply is about 70 percent coal-based and wind
is among the most viable alternatives outside of hydro power.
“It is one of IFC’s strategic priorities to address the climate change
challenge through renewable energy development, clean tech investments
and innovative energy efficiency financing,” said Karin Finkelston, IFC’s
Director for East Asia and the Pacific. “Our investment in Goldwind
will support the company in avoiding over 100 million tons of CO2 emissions
over the next five years and create more than 1,000 jobs, half of which
will be in some of China’s poorest Western regions.”
IFC expects to be a long-term investor in the private sector wind turbine
manufacturer with a view to support Goldwind’s research and development
and south-south investments in the future, helping to better address the
challenges of climate change through wind energy in Africa and Asia.
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.