DCM Ping An Leasing Sustainability Bond (IFC-42159)

Countries
  • China
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
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
B
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
Aug 7, 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
PING AN INTERNATIONAL FINANCIAL LEASING CO., LTD.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
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)
$ 253.86 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 @ IFC website

Updated in EWS Mar 12, 2025

Disclosed by Bank Sep 9, 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 Bank’s website, the proposed investment entails a subscription of up to 1.8 billion Chinese renminbi (approximately US$250 million equivalent) in an up to 5-year senior bond (the “Bond”) to be issued by Ping An International Financial Leasing Co., Ltd. (“Ping An Leasing” or “the Company”), a commercial leasing company wholly-owned by Ping An Insurance (Group) Company of China, Ltd. (“Ping An Group”) (2318.HK, 601318.CH) in China. IFC will be an anchor investor in the Bond. The Bond will support Ping An Leasing to expand its eligible climate finance and social finance portfolio in line with the Sustainability Bond Guidelines (and in accordance with the Social Bond Principles and Green Bond Principles) of the International Capital Market Association (“ICMA”). All of IFC own account investment is expected to be used for eligible climate finance projects. On a best-effort basis, at least 25 percent of the IFC’s subscription will be used towards eligible electric vehicle leases for women customers.

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 project is a IFC’s investment in a publicly offered sustainability bond issued by Ping An Leasing to support its growth of green and social lease financing. Ping An Leasing is a commercial leasing company providing leasing finance to individuals, micro, small and medium enterprises, corporates and development projects in China. The bond will exclude any higher risk business activities that involve a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, d) risk of significate retrenchment, or e) significant Occupational Health and Safety risks. Any coal-related activities including coal mining, coal transportation or coal-fired power plants, and infrastructure services exclusively dedicated to support any of these activities will not be supported by the bond. The activities to be supported by the bond are expected to be moderate E&S risks, that are generally site-specific and typically include occupational health and safety, pollution, waste and wastewater, labor and working conditions issues. The project has been categorized as a Category FI-2 project according to IFC Sustainability Policy.

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

Up to 1.8 billion Chinese renminbi (approximately US$250 million equivalent) in an up to 5-year senior bond to be issued by Ping An Leasing via a public issuance.

IFC's Investment as Approved by the Board: Loan 253.86 million (USD)

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.

Ping An Leasing is 100% owned by Ping An Group, with 69.44% via a direct equity stake and the remaining 30.56% via China Ping An Insurance Overseas (Holdings) Limited, a wholly-owned subsidiary of Ping An Group. Headquartered in Shenzhen, Ping An Group was founded in 1988 and is a leading financial services group in China.


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.

Ping An International Financial Leasing Co., Ltd.
Mr. Zhu Liedi
Finance Manager
00862138631217
zhuliedi627@pingan.com.cn
8 Century Avenue, Pudong New District, Shanghai, P.R.China
https://pazl.pingan.cn/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works