China Everbright gets US$200m ADB loan | South China Morning Post
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  • Apr 19, 2015
  • Updated: 4:39pm

China Everbright gets US$200m ADB loan

PUBLISHED : Friday, 04 September, 2009, 12:00am
UPDATED : Friday, 04 September, 2009, 12:00am
 

The Asian Development Bank (ADB) has agreed to lend up to US$200 million to Hong Kong-listed China Everbright International, a leading environmental business developer, to push growth of waste-to-power plants in second-tier cities across the mainland.

The credit line contract signed in Beijing yesterday was the ADB's first private sector municipal solid waste management project.

The bank will provide half the loan and the remainder will come from syndicated commercial lenders with ADB acting as 'lender of record'.

The loans carry a maturity of up to 10 years with a three-year grace period.

Interest rates for the loans were not specified, but they will be 200 to 250 basis points higher than the London interbank offered rate, said Jo Yamagata, the deputy director general of ADB's private sector operations department.

The loans will be assigned to China Everbright Environmental Energy and the first projects to be funded are likely to be a waste-based power plant in Jinan, Shandong, and another in Zhenjiang in Jiangsu province.

To date, China Everbright International has committed 6.6 billion yuan (HK$7.49 billion) to 26 environmental protection projects that are up and running or being developed mainly in the two coastal provinces. They cover not only waste-based electricity generation, but also waste water treatment and industrial waste treatment businesses.

China Everbright International general manager Philip Fan said the company intended to invest 10 billion yuan in the projects.

The stronger economies of coastal provinces and sharper environment protection awareness of the public there were behind the company's preference for locating its environmental businesses in the Yangtze River and Pearl River delta areas and provinces around the Bohai Bay Rim, Fan said.

'But when the conditions are right, we will for sure expand outside these areas,' he added.

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