The International Finance Corporation (IFC) and Bank of Beijing
on Friday signed cooperation agreements on financing energy
efficiency and global trade.
These are the first cooperation pacts between the two sides
since the IFC made an equity investment in Bank of Beijing in May
2005, said Yan Bingzhu, chairman of the Beijing bank.
Lars Thunell (left), IFC's executive vice president, shakes hand
with Yan Xiaoyan, president of the Bank of Beijing, at a signing
ceremony in Beijing yesterday. [Xinhua]
Since IFC, the private arm of the World Bank Group, bought a
five percent stake in the local bank, they have been working
together to improve the latter's corporate governance, risk
management and business innovation.
The IFC China Utility-based Energy Efficiency Finance Program
(CHUEE) will provide risk-sharing coverage of 130 million yuan,
enabling Bank of Beijing to establish a loan portfolio of 300
million yuan in energy efficiency projects.
Most loans will go to energy service companies to help local
small and medium-sized companies improve energy efficiency and use
of clean energies.
The bank will implement the program in Beijing and Tianjin to
help solve energy shortages and pollution problems.
IFC cooperated with Industrial Bank last year under the CHUEE
program.
Under the agreement, Bank of Beijing will join IFC's global
trade finance program as both a confirming bank and an issuing
bank.
The program will help the bank expand its global trade finance
business and improve its global competitiveness.
"The signings mark significant progress in our partnership with
Bank of Beijing, as well as IFC's growing involvement in the reform
and development of China's financial sector," said Lars Thunell,
IFC's head.
In another move, IFC signed a memorandum of understanding (MOU)
with the Export and Import Bank of China (China Eximbank) on
Friday.
The MOU is part of China Eximbank's comprehensive cooperation
with the World Bank. The two institutions signed an MOU on
cooperation, with a particular focus on Africa, in Washington in
late May.
IFC and China Eximbank will cooperate to support environmentally
and socially sustainable investment in emerging markets, including
China.
They will engage in joint investments, including equity
investments, project financing and credit guarantees, IFC said.
(China Daily June 2, 2007)
