IFC guarantees energy efficiency project loans

Efficiency - Supply Side / China:

IFC, the private sector arm of the World Bank, has agreed to provide a risk-sharing guarantee of CNY 130m (USD 17m) to Bank of Beijing for financing energy efficiency projects.

The risk-sharing guarantee will enable Bank of Beijing to leverage an overall loan portfolio of CNY 300m (USD 39m) in energy efficiency projects.

Most of the lending will go to energy service companies that offer such services as industrial boiler retrofitting, wasted heat recovery, implementation of CHP and CHPC (combined heat, power and cooling) projects, and optimization of industrial energy use.

The agreement was signed under the framework of China Utility-Based Energy Efficiency Finance Program, which is an energy efficiency financing program designed by IFC at the request of Chinese Ministry of Finance, to stimulate investment in energy efficiency and clean energy projects. IFC cooperates with Chinese commercial banks and offers them a facility whereby IFC shares the risk associated with the loans.

By: New Energy Finance

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