Beijing, China, November 27, 2012—IFC,
a member of the World Bank Group, and Bank of Jiangsu today launched a
risk-sharing facility to support energy-efficiency and renewable-energy
projects in China’s coastal province of Jiangsu.
The risk-sharing facility helps mitigate
Bank of Jiangsu’s default risk when financing climate-friendly projects
and will promote loans worth 924 million yuan ($144 million) for around
30 sustainable-energy projects. Together with IFC, China’s Ministry of
Finance, the Jiangsu Provincial Finance Department, and the China Clean
Development Mechanism Fund are providing 462 million yuan ($73 million)
for the risk-sharing facility with Bank of Jiangsu.
The Jiangsu facility comes under IFC’s
China Utility-based Energy Efficiency Finance Program (CHUEE). It marks
the first time that IFC works with the China CDM Fund as part of an innovative
public-private-partnership that also leverages funds from central and provincial
governments to address climate change challenges in a specific Chinese
province. In addition to the risk-sharing, IFC will advise the funding
partners and the Bank of Jiangsu on assessing sustainable energy projects
and help ensure that lending to climate-friendly projects is a profitable
"IFC plays a critical role in China
by promoting economic growth that is both inclusive and sustainable,”
said IFC Executive Vice President and CEO Jin-Yong Cai at the launch of
the facility. “We entice banks to finance climate-friendly projects by
sharing some of their financial risk and we connect financial institutions
with market expertise to help them better understand the energy-efficiency
and renewable-energy sectors."
IFC established CHUEE in 2006. By the
end of September this year, banks participating in the risk-sharing program
had provided loans worth $783 million to 178 energy-efficiency and renewable-energy
projects which reduce greenhouse-gas emissions by 19 million tons a year,
roughly the equivalent of the annual emissions of nearly 40 medium-sized
coal-fired power plants.
“At the World Bank Group, we are convinced
that significant progress on the environment can be achieved by focusing
on situations where the interests of the private sector, governments, communities,
and future generations are clearly aligned," said World Bank Group
President Jim Yong Kim. “CHUEE Jiangsu is an excellent example of how
private-public partnerships can provide the solutions that generate economic
opportunities while also conserving the environment.”
Bank of Jiangsu is headquartered in
Nanjing, the capital of the Jiangsu province, which has the second-largest
gross domestic product among China’s provinces. By assets, Bank of Jiangsu
is the country’s third-largest city commercial bank.
“We are proud that Bank of Jiangsu
is the first bank to implement a CHUEE program on the provincial level,”
said Huang Zhiwei, chairman of the Bank of Jiangsu, “With support from
the government at all levels and IFC, we are able to contribute to China’s
low-carbon economy by helping Jiangsu enterprises implement renewable-energy
and energy-efficiency projects.”
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.