Weigao GreenBond (IFC-43238)

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.
Specific Location
Weihai, Shandong Province, and in Qionglai, Sichuan Province
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Jun 30, 2020
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
Shandong Weigao Group Medical Polymer Co., Ltd.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
  • Energy
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)
$ 216.00 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)
$ 216.00 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)
$ 328.00 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.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 12, 2024

Disclosed by Bank Dec 18, 2019

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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 document, Shandong Weigao Group Medical Polymer Company Limited (“Weigao”, or the “Company”), a Chinese medical consumable company listed on the Hong Kong Stock Exchange, is planning to invest in several green capital expenditure projects along its manufacturing process, which will include energy and water efficiency as well as pollution reduction measures (the “Project”). Weigao is organized into three operating divisions:

(i) Single-use consumables (infusion set, syringes, medical needles, blood bags, pre-filling syringes, blood sampling products),

(ii) orthopedic products, and

(iii) interventional products. Weigao’s manufacturing operations are situated mainly in Weihai, Shandong Province, and in Qionglai, Sichuan Province. Weigao also has a number of other subsidiaries in the group, viz.: Weigao Medical Device; Weigao Orthopedic and Argon Medical (in the United States).

IFC is considering an investment in Weigao through a long-term green bond of RMB 1 billion (approx. US$142 million equivalent) for implementation of resource efficiency and environmental protection measures, such as power optimization with retrofit transformers, wastewater recycling plant and electron beam sterilization (thereby replacing ethylene oxide) across its manufacturing operations (the “project”).

Weigao’s manufacturing operations are situated mainly in Weihai, Shandong Province, and in Qionglai, Sichuan Province.

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

The Project cost is expected to be RMB 3 billion (approximately US$432 million), which will be partly financed by Weigao’s first green bond issuance and a straight senior loan from IFC. IFC has been invited to be the sole subscriber of the proposed green bond of up to RMB 1 billion (approximately US$144 million), and provider of a straight senior loan of RMB 500 million (approximately (US$72 million).

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.

Weigao Holding Company Limited (“Weigao Holding”, or the “Sponsor”), headquartered in Weihai, Shandong province, is a private company that engages in a number of businesses including pharmaceutical.

Weigao is 50.2% owned by Weigao Holding with the remaining 49.8% owned by public shareholders.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Shandong Weigao Group Medical Polymer Company Limited Client -
- - - - Weigao Holding Company Limited Parent Company -

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.

1/ Local Contact

Shandong Weigao Group Medical Polymer Co.,Ltd.

Contact: Phyllis Chan
Head of Business Development

Phone: +852 2838 1868

Email: phyllischan@weigao.com.hk

Address: Suite 801, 8th Floor, Chinachem Century Tower, 178 Gloucester Road, Wanchai, Hong Kong SAR, China

Website: http://en.weigaogroup.com/

2/ The IFC Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

3/ Local Access for Project Document

18 Xingshan Road

Weihai Torch Hi-tech Science Park

Weihai, Shandong Province

People’s Republic of China

ACCOUNTABILITY MECHANISM OF IFC

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/

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How it works