Tsing Capital is the first private equity fund manager dedicated to cleantech investment in China. Founded in 2001, Tsing Capital was initially supported by Tsinghua University, a leading science and engineering university in China. To date, Tsing Capital has managed three funds namely China Environment Fund 2002, L.P., China Environment Fund 2004, L.P. and China Environment Fund III, L.P. The management team will be led by Don Ye and Shelby Chen.

The Fund is targeting to raise $350 million commitment. IFC proposes an equity investment of the lesser of $20 million or 20% of the total commitments.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	20.0

* These investment figures are indicative

CEF IV is formed as a Cayman Islands exempted limited partnership. Unless otherwise approved by its advisory board, the Fund will invest at least 85% of its aggregate commitments in China-focused companies.

The project is designed to have significant impact in (1) promotion of greenhouse gas reduction, (2) promotion of the more environmentally sustainable practices, (3) support of the development of a relatively new sector and (4) job creation, including in China's frontier regions, through investment in China-focused cleantech portfolio companies.

IFC will play significant and unique role in (i) catalyzing funding from various investors, including the development financial institution and international financial institution, (ii) incorporating high environmental and social ("E&S") standards in the Fund's operations, (iii) promoting the creation and dissemination of sustainable investment practices and (iii) possible co-investment with the Fund from time to time.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Portfolio activities of the Fund shall be consistent with the IFC FI Exclusion List, applicable national E&S laws and regulations, and the IFC Performance Standards. The Fund Manager has developed a Social & Environmental Management System (SEMS) under its existing CEF funds and will be required to apply the SEMS to the Fund too.


During the appraisal for the Fund, IFC will further assess CEF existing portfolio and new pipeline activities’ potential E&S risks, and may suggest supplemental actions to address any gaps in its SEMS implementation if needed. The Fund will not invest in any nuclear-related or coal-based projects. Also, IFC will have the rights to review the Fund’s first few portfolio investments, prior to their investment decisions, to ensure the Fund’s SEMS is operating adequately in assessing and managing E&S risks consistent with the above requirements. In addition, the Fund will be required to retain qualified person(s) to manage and implement the SEMS and submit periodic reports to IFC as per a format to be provided by IFC.