IFC backs Industrial Bank on green loans

The International Financial Corporation (IFC), a member of the World Bank Group, will provide a $100 million risk-sharing facility to the Industrial Bank to support green loans in China.

Yesterday's deal is the second phase of the IFC's energy efficiency financing program with the Industrial Bank , which will help the Fujian-based bank extend 1.5 billion yuan in green loans to cut 5 million tons of carbon dioxide emissions a year. That's the equivalent of closing 10 100-MW coal-fired power plants in China.

"The IFC will bear a certain portion of losses for all the loans within the energy efficiency financing portfolio," Jyrki Koskelo, the IFC's vice-president for Africa, global financial markets and funds, said. "The program offers a package of technical assistance on market research, project development and equipment financing services to its partners."