The Asian Development Bank (ADB) and Citic Financial Leasing Co. Ltd. (CFL) signed a CNY488 million loan, equivalent to $70 million, to fund the lease of clean energy projects in the People’s Republic of China (PRC). The loan is expected to finance at least four clean energy leasing projects, reducing carbon dioxide emissions by 128,000 tons a year.
The loan deal was signed by the Director of ADB’s Private Sector Financial Institutions Division Director Christine Engstrom and CFL’s Acting President Mr. Yu Xiudong whose appointment is pending regulatory approval.
“Significant investment in renewable energy projects is needed to meet global commitments to fight climate change and pursue environmentally sustainable development,” said Ms. Engstrom. “Leasing is an efficient way of financing equipment. Long-tenor lease products can be a good financing solution for solar power equipment with a long operating life.”
The deal marks ADB’s first non-sovereign loan to support clean energy development in the PRC through leasing. It builds on ADB’s success using the leasing modality to support green transport and wastewater treatment in the PRC.
”CFL has been focusing on green finance with green leasing accounting for over 70% of our portfolio. We provide customized professional solutions to clients in renewable energy, energy efficiency, emission reduction and environmental protection,” said Mr.Yu. ”CFL will closely follow national strategies and industry development trend to develop diversified portfolio in qualified sectors.
CFL was established in March 2015 as a wholly-owned subsidiary of the China Citic Bank, a national joint-stock commercial bank in the PRC. CFL’s business focus has been on green leasing, covering clean energy, energy savings, environmental protection, livelihood sectors, and modern transportation.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.