CHINA / Regional |
IFC, Bank of Beijing sign cooperation pactsBy Zhang Lu (China Daily)Updated: 2007-06-02 11:24 The International Finance Corporation (IFC) and Bank of Beijing on Friday signed cooperation agreements on financing energy efficiency and global trade. These are the first cooperation pacts between the two sides since the IFC made an equity investment in Bank of Beijing in May 2005, said Yan Bingzhu, chairman of the Beijing bank. Since IFC, the private arm of the World Bank Group, bought a 5 percent stake in the local bank, they have been working together to improve the latter's corporate governance, risk management and business innovation. The IFC China Utility-based Energy Efficiency Finance Program (CHUEE) will provide risk-sharing coverage of 130 million yuan, enabling Bank of Beijing to establish a loan portfolio of 300 million yuan in energy efficiency projects. Most loans will go to energy service companies to help local small and medium-sized companies improve energy efficiency and use of clean energies. The bank will implement the program in Beijing and Tianjin to help solve energy shortages and pollution problems. IFC cooperated with Industrial Bank last year under the CHUEE program. Under the agreement, Bank of Beijing will join IFC's global trade finance program as both a confirming bank and an issuing bank. The program will help the bank expand its global trade finance business and improve its global competitiveness. "The signings mark significant progress in our partnership with Bank of Beijing, as well as IFC's growing involvement in the reform and development of China's financial sector," said Lars Thunell, IFC's head. In another move, IFC signed a memorandum of understanding (MOU) with the Export and Import Bank of China (China Eximbank) on Friday. The MOU is part of China Eximbank's comprehensive cooperation with the World Bank. The two institutions signed an MOU on cooperation, with a particular focus on Africa, in Washington in late May. IFC and China Eximbank will cooperate to support environmentally and socially sustainable investment in emerging markets, including China. They will engage in joint investments, including equity investments, project financing and credit guarantees, IFC said. |
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