Bangkok, Thailand, December 8, 2011—
IFC, a member of the World Bank Group, is scaling up energy efficiency and renewable-energy financing in Thailand by partnering with Bangkok Mitsubishi UFJ Lease Ltd. to help companies find funding for projects that reduce greenhouse-gas emission and use sustainable energy.
IFC’s risk-sharing facility agreement with Bangkok Mitsubishi UFJ Lease signed today is expected to support up to $70 million in new leases to enable companies to acquire equipment that reduces energy consumption and pollution, leading to more efficient production, lower costs, and higher productivity.
By sharing the credit risk on these leases, IFC is helping Bangkok Mitsubishi UFJ Lease expand its renewable energy and energy-efficiency financing portfolio. As IFC’s first risk-sharing facility on energy efficiency in Thailand, the partnership is also aimed at deepening the market for these products in the country.
“We are taking full advantage of IFC’s support and global experience to help develop our portfolio of sustainable-energy leases in Thailand and combining that with our knowledge and experience from Japan,” said Hideki Kobayakawa, President of Bangkok Mitsubishi UFJ Lease.
In 2009, IFC entered into a memorandum of understanding with Mitsubishi UFJ Lease and Finance, BMUL’s parent company, to cooperate in developing lease-financing opportunities in sustainable-energy. The agreement with Bangkok Mitsubishi UFJ Lease is the first transaction under the MOU.
“The partnership between IFC and Bangkok Mitsubishi UFJ Lease is part of our strategy to scale up financing to projects in energy efficiency and renewable energy,” said Serge Devieux, IFC Director for Financial Markets in Asia. “Private sector financing is essential in helping developing countries address climate change.”
The facility also receives support from the World Bank’s Clean Technology Fund.
Thailand relies heavily on expensive oil imports for its energy supply. The industrial sector is the biggest power consumer in the country. The Thai government aims to reduce energy intensity in the industrial sector by 20 percent by 2020 from its level in 2006.
About IFC
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, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
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About Bangkok Mitsubishi UFJ Lease
BMUL is an active leasing company in Thailand in the areas of machinery, equipment, and auto leasing business. Established in 1993, BMUL is a subsidiary of Mitsubishi UFJ Lease & Finance, the leading company in the field of Lease and Finance in Japan. For more information, visit:
www.lf.mufg.jp
or call BMUL (662) 266-6040.
