The sponsor and major shareholder of the project company is Antai. Antai is one of China’s six largest merchant coke suppliers, the majority of which are SOEs, and a small pig iron producer. It is a founder shareholder (with a 0.6% stake) of Minsheng Bank, China’s first private bank in which IFC has made a $23.5 million investment for a 1.22% share.

The total project cost is estimated to be about $119 million. IFC’s investment would consist of a loan of up to $70 million.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

* These investment figures are indicative

The new coke plant will be located in in Jiexiu City, Shanxi Province, China

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental/social information submitted by the project sponsor, as well as site appraisal. Environmental issues include: air emission control; wastewater management; site acquisition and related social impacts; employment opportunities; sustainable coking coal supply; and performance of other local activities owned by the same sponsor company. Further details are provided in the Environmental Review Summary separately available.
Location of environmental documents in locally affected community
Jiexiu City Public Library, Jiexiu City, Shanxi Province, Peoples Republic of China.

Development Impact: The project supports the restructuring of the coke production sector in which China has a strong comparative advantage. In line with the Chinese government’s efforts towards modernizing the industry and phasing out notoriously polluting beehive coke production units, the sponsor intends to substitute sales of coke from such facilities with production from a modern plant under their control. The high impact of this project comes from the sponsor’s strong orientation towards an environmentally friendly and sustainable long-term business model. It will further the development of a competitive local company in the interior Shanxi Province of China through increased industrial activity, job creation, and an increase in the direct and indirect demand for goods and services. IFC Role: Although there has been a significant increase in credit growth in China recently, private companies still experience difficulty accessing large loans on a long-term basis for projects in the interior of China. The sponsor has the ambition to develop into a globally competitive coke producer. Despite its solid reputation, it operates in a heavy industry in the poorer interior of China and therefore needs IFC’s long-term financing which will enable the project to maintain a sound balance sheet. Given its long-term goal of listing the project company abroad, it seeks partnership with IFC not only for the provision of long-term capital but also for IFC’s capacity to share best practices in environmental management and corporate governance.