China: JC Leasing Green and Blue Loan (AIIB-000866)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • China
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 20, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
JC International Finance & Leasing Co., Ltd.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
  • Transport
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 225.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jul 1, 2024


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the AIIB, the objective of the project is to contribute to climate change mitigation and improved water supply and sanitation in China by enhancing access to green and blue leasing.

The Project encompasses a 5-year senior loan of up to USD100 million equivalent in CNY to JC International Finance & Leasing Co., Ltd. (JC Leasing) to help grow its green and blue finance portfolio in China. The financing will be aligned with the Green Loan Principles of the Loan Market Association to ensure transparency in use of proceeds, monitoring, and reporting. The Project is dedicated to proactively expanding JC Leasing's climate ambition into broader green assets and enhancing the contribution from China's non-bank financial institution sector to climate change mitigation. In the proposed Project, AIIB is partnering with the International Finance Corporation to jointly support the Borrower.

While part of the AIIB Loan proceeds is expected to support eligible 'green' activities (such as energy efficiency, clean transport, and renewable energy), the other part of loan proceeds will be earmarked for eligible 'blue' activities (such as water supply and water sanitation). Blue finance is an emerging area in climate finance with increasing interest from investors, financial institutions, and issuers globally. This financing will mark AIIB's first blue loan globally.

The Project supports JC Leasing's expansion of sustainable finance offerings, including energy efficiency, clean transport, renewable energy, water supply and water sanitation. JC Leasing's portfolio showcases a commitment to moderate-risk subprojects with relatively small ticket sizes and average tenures of 24 to 36 months. JC Leasing's operations follow three business models: direct leasing, sale-leaseback, and operational lease. Most of its green and blue portfolio and pipeline relate to the leasing of energy-efficient manufacturing equipment and upgraded public utility infrastructure.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The AIIB categorized the project E&S risks as 'FI'. It also stated that "all Category A and higher risk Category B subprojects will be excluded as defined by AIIB's ESP."

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The project will be financed as follows:

  • IFC Loan USD100 million equivalent in CNY;
  • AIIB Loan USD100 million equivalent in CNY;
  • Commercial bank loan USD25 million equivalent in CN.

The AIIB Loan will be split into two tranches:

  1. Committed tranche of USD60 million equivalent in CNY;
  2. Uncommitted tranche of USD40million equivalent in CNY.

There should be at least 12 months in between each commitment.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, JC International Finance & Leasing Co.,Ltd. provides financial and leasing services. The Company offers fleased property treatment, lease transaction consultation, lease guarantee, commercial factoring, and other services. JC International Finance & Leasing provides its services for public transport, urban infrastructure, gas, water, waste disposal, and other industries.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AIIB Team Leader:

Sherry Huaixue Fu - Senior Investment Officer, Financial Institutions and Syndications
Email: huaixue.fu@aiib.org

Financial Intermediary - JC International Finance & Leasing Co., Ltd.:

Guangyong Wang - Chief Financial Officer
Email: guangyong.wang@jclegend.com

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

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How it works