30815 - CHUEE SME SPDB

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Summary of Proposed Investment

Project Number

30815

Company Name

Shanghai Pudong Development Bank Co., Ltd.

Date SPI Disclosed

Apr 12, 2011

Country

China

Industry

Financial Markets

Projected Board Date

May 19, 2011

Status

Pending Signing

Sector

Commercial Banking - General

Department

Regional Industry - FIG Asia & Pac

Environmental Category

Previous Events

Approved : May 19, 2011

Project Description

IFC is in discussion with Shanghai Pudong Development Bank (“SPDB”) to enter into a risk sharing facility (“RSF” or the “Project”). This would be the first phase of CHUEE SME under which IFC intends to support energy efficiency (“EE”) and renewable energy (“RE”) projects with small and medium enterprises (“SME”) in China through IFC RSFs with local financial institutions. In this proposed project, IFC would take credit risk in a loan portfolio to be originated and funded by SPDB. The Project is expected to receive support from the Global Environment Facility.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	50.84
Loan
Equity

Development Impact

(i) Environmental benefit: Annual reduction of 267,000 tCO2/year during 2015 to 2018 (ii) SME access to finance: At least a total of 35 eligible loans will be disbursed by the end of 2014 from a baseline of zero loans as of December 2010 (iii) Demonstration effect: Encouraging the Chinese government at both central and local levels to participate in future public private partnership initiatives of this type; and (iv) Capacity building: Promoting the development of industry specific loan underwriting criteria and improved risk management practices.

(i) With more than a decade experience in supporting EE financing globally, especially in China through CHUEE, IFC is in the best position to continue innovation to address major market gaps for SMEs to access funding for EE and RE projects and activities; (ii) IFC's advisory services will be delivered through IFC's established technical assistance platform which has great experience in building banks' capability to do EE/RE lending and SME finance; and (iii) In the absence of IFC's participation, it will be very difficult to raise funding for first loss and advisory services, both critical for the success of the project.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Considering the size and the EE technology applications of these subprojects, the Applicable Performance Requirements will include a combination of the IFC FI Exclusion List, the applicable Chinese social and environmental laws and regulations and applicable IFC Environmental, Health and Safety Guidelines. SPDB will be required to implement a social and environmental management system (SEMS) to properly assess and manage the E&S risks associated with the subprojects consistent with the Applicable Performance Requirements. A satisfactory SEMS will be a condition of the effectiveness of the risk sharing facilities. In addition, SPDB will be required to appoint designated staff to oversee the SEMS implementation and submit periodic reports per a form provided by IFC.

Contacts

For Inquiries About the Project, Contact

Mr. Zheng Dawei Corporate and Investment Banking Department Shanghai Pudong Development Bank No. 689 Beijing East Road, Shanghai 200001 Tel Number: +86-21-61616289 Fax number: +86-21-63604215

For Inquiries and Comments About IFC, Contact

General IFC Inquiries IFC Corporate Relations 2121 Pennsylvania Avenue, NW Washington DC 20433 Telephone: 202-473-3800 Fax: 202-974-4384E Mail: Webmaster

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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