Beijing, June 21, 2004
—The International Finance Corporation, the private sector arm of the World Bank Group, has agreed to provide up to $30 million in financing for China Green Energy Limited to develop, own and operate power projects in China. The company specializes in combined heat and power plants, and waste to energy facilities that utilize municipal solid waste as fuel. It is IFC’s first investment in a power company that specializes in waste to energy plants. It is also IFC’s first project with a Chinese local partner in the power sector.
As part of its investment, IFC will take an active role in helping China Green improve its corporate governance practices, and to support its effort to access international capital markets through an initial public offering in an international stock exchange. IFC financing will be provided in the form of a $20 million senior loan and up to $10 million in equity warrants.
Francisco Tourreilles, IFC’s Director for Infrastructure said, “China Green is committed to developing environmentally sustainable power projects in China. The success of China Green will demonstrate that environmentally compliant, well-managed private power projects can be financially viable in China, and will set an example for other Chinese private power companies.” Javed Hamid, Director for East Asia and the Pacific, added, "Supporting local companies that strive to improve independent professional management and strong corporate governance is a priority for IFC. IFC's investment will lend credibility to other local firms seeking international funding in the Chinese power market, as well as the broader infrastructure market."
Chairman Dou Zhenggang of China Green, said: “We are very proud to be working with IFC. We wish to become a leading environmentally friendly private energy company in China, and to list in an international stock exchange in the next few years. We see IFC as a long term partner who can add tremendous value in achieving our strategic goals.” China Green is owned by Mr. Dou Zhenggang, a Chinese entrepreneur who is also the founder and principal owner of the Hangzhou Jinjiang Group, one of the largest Chinese private sector companies in Zhejiang province of China with interests in power, textiles, and pulp and paper industries.
The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
