JBIC Makes Equity Contribution to a Fund, Investing in China's Environment and Energy Efficiency Projects Investment under FACE to Support Climate Change Mitigation in China
Environment
NR/2008-62
December 19, 2008
December 19, 2008
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed today a Limited Partnership Agreement on China Environment Fund III, L.P. (CEF III), which makes investments in environment and energy efficiency projects with Tsing Capital Co., Ltd (Managing Partner: Don Ye) of the People's Republic of China serving as an investment advisor.
- CEF III is seeking up to US$250 million in capital commitments. JBIC and the Bank of Tokyo-Mitsubishi UFJ each will make up to US$15 million equity investments. Aside from JBIC, multilateral institutions such as International Finance Corporation(IFC), public financial institutions, export credit agencies and private financial institutions and corporations in other countries have indicated their participation in CEF III as co-investors.
- CEF III is a private equity fund with a focus on projects in the sectors including the energy efficiency, renewable energy, water resource/water treatment, and waste disposal in China. Facing serious environmental problems which have arisen from economic growth, China has a growing demand for environmental and energy efficiency projects. Against this backdrop, CEF III aims to identify and implement high-quality projects with Tsing Capital, which has an excellent track record in these areas, serving as an advisor.
- JBIC established the JBIC Facility for Asia Cooperation and Environment (FACE) in April 2008 and indicated its intention of strengthening support for climate change mitigation and projects in Asia by utilizing its equity investment and guarantee functions. The signing of this agreement aims to finance projects contributing to climate change mitigation efforts in China by mobilizing JBIC's equity investment function under FACE*2 JBIC will continue to provide cooperation for and contribute to climate change mitigation by making use of its equity investment function, as well as the experience and knowledge it has acquired in the area of environmental and social considerations.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor Shosaku Yasui).
- *2 FACE was established in April 2008 as one component of Cool Earth Partnership, a new financial mechanism of the Japanese government announced by the former Prime Minister Yasuo Fukuda in his speech delivered in Davos, Switzerland, in January 2008.
