The first partner bank in this Project is likely to be Industrial Bank (“IB”). Founded in 1988, IB is one of China’s national joint-stock commercial banks. IB was IFC’s first FI partner under the CHUEE program, having signed the first-phase CHUEE I agreement in 2006 and the second-phase CHUEE II agreement in 2008. IB is a listed bank in Shanghai A share Stock Exchange. Its largest three shareholders are Fujian Provincial Finance Bureau (20.8%), Hang Seng Bank (12.78%) and GIC (3.88%).

The total EE portfolio is $100 million. IFC’s investment is $50 million equivalent risk sharing.

51.75 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	51.75
Loan
Equity

* These investment figures are indicative

The subprojects included in this Project do not have a fixed location. They are within China.

(i)potential reduction of approximately 4 million tons of CO2equivalent greenhouse gas emissions per year; (ii) supporting the local banks to strengthen their in-house capacity of assessing energy efficiency projects by providing advisory services on a commercial basis; (iii) provision of EE finance support to over 50 SMEs.

With increasing attention and pressure from government, many state owned companies and large companies have undertaken EE improvement projects. However, the majority of SMEs are less interested due to lack of awareness or access to finance. This project aims to address the gap. IFC works with SME focused small and medium sized local banks to exclusively extend EE finance to SME clients.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. The Applicable Performance Requirements include a combination of the IFC FI Exclusion List and the applicable Chinese social and environmental laws and regulations. All participating banks will be required to implement a social and environmental management system (SEMS) to assess and manage the E&S risks associated with the subprojects consistent with the Applicable Performance Requirements. A satisfactory SEMS, which shall include environmental and social eligibility criteria for sub-projects proposed for financing, will be a condition of IFC commitment. During appraisal, IFC will review the portfolio risk and these bank''s capacities to manage such E&S risks. IFC will also review these banks’ labor practices against IFC Performance Standard 2: Labor and Working Conditions. In addition, all participating banks availing of this facility will be required to appoint designated staff to oversee the SEMS implementation and submit periodic reports per a form provided by IFC.