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Beijing, March 26, 2008—
Support from IFC, a member of the World Bank Group, has enabled the Bank of Beijing to invest in energy efficiency programs in China that will lower energy consumption, reduce emissions, and improve the financial returns of small and midsize businesses.
The Bank of Beijing has disbursed 14.5 million renminbi ($2.07 million) in loans for energy efficiency projects. Its first borrower, Hunan Xiangtan Tianhao Shaofeng Energy Saving Technology Co., Ltd, has been approved a four-year, 16 million renminbi ($2.2 million) loan for designing and installing cement waste heat recovery and power generation facilities in central China. This will enable the energy end user, Hunan Shaofeng Cement Plant, to lower its energy consumption, reduce emissions, and improve financial returns by up to 10 million renminbi. The project will reduce carbon dioxide emissions by more than 510,000 tons and substantially improve local air quality during its 20-year lifecycle.
“As a start-up company, we have found it challenging to access financing, but the Bank of Beijing and IFC have provided just the right solution. Their teams of experts reviewed our project and disbursed the first tranche of the loan in just two months,” said Wang Zufeng, Chairman of Xiangtan Tianhao.
“The Bank of Beijing is dedicated to providing quality financial services to small and medium enterprises, and we are proud to be the first city commercial bank in China to offer energy efficiency financing,” said Yan Xiaoyan, President of the Bank of Beijing. “We hope that more SMEs, especially those in the country’s least-developed areas, can benefit from our value-added services. We are using our growing network to become a leading provider throughout Beijing, Shanghai, Tianjin, and Xi’an.”
Michael Ipson, IFC Country Manager for China and Mongolia, said, “We are pleased to provide financial support and advisory services to the Bank of Beijing to help it tailor financial services to small and midsize end users of energy. The bank is extending its reach in underserved areas, and its energy efficiency product and range of services for small businesses are making a significant impact. This is an important step as Bank of Beijing evolves into a national commercial bank.”
The Bank of Beijing is a partner of the IFC China Utility-based Energy Efficiency Finance Program. Since signing a risk-sharing agreement with IFC in June 2007, it has developed a dozen energy-efficiency financing projects in six provinces and municipalities.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, please visit
www.ifc.org
.
Funded by IFC, the Global Environment Facility, and the Finnish and Norwegian governments, the IFC China Utility-based Energy Efficiency Program was designed by IFC at the request of China’s Ministry of Finance. The goal is to lower emissions of greenhouse gases by creating a sustainable financing mechanism for investment in energy efficiency, clean energy, and emission reduction projects. IFC offers Chinese commercial banks a facility through which IFC shares part of the risk for all loans within the energy efficiency portfolio. IFC also provides advisory services on marketing, engineering, project development, and equipment financing services to banks, project developers, and suppliers of energy efficiency products and services. For more information, visit
www.ifc.org/chuee
.
About the Bank of Beijing
The Bank of Beijing was established in January 1996. It is a joint-stock commercial bank, and its shareholders include overseas investors, local finance, and well-known enterprises and individuals. It is a profitable bank with strong growth potential. The bank ranks 262 among the global top 1,000 banks and 13 among Chinese banks. The Bank of Beijing’s A-shares were successfully listed and issued on the Shanghai Stock Exchange in September 2007.
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