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.
About IFC
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
.
