China: Haier Social Infrastructure Leasing

approved

The project will provide funding for social infrastructure investments which improve access to essential social services, including healthcare and education, in rural and less developed areas of China. This will be achieved through AIIB's investment of up to USD100 million into a social bond program by Haier Financial Services (“Haier Leasing” or the “Company”), who will provide lease finance to relevant firms for the individual social projects. Haier Leasing is the leasing arm of the Chinese appliance manufacturer Haier Group. This will be the first social bond issued within the Haier Group which specifically targets less-developed regions of China. For the project, Haier Leasing will set up a Social Bond Framework that will govern the selection of eligible social subprojects and which aligns with International Capital Markets Association (ICMA) Social Bond Principles. The Company will also use an ESMS aligned with both the AIIB's Environmental and Social Framework and International Financial Corporation (IFC) Performance Standards. IFC will be a parallel investor as well as the Company's environmental and social (E&S) technical advisor. The project will be the first time IFC and AIIB are supporting social bond issuance by a Chinese nonbanking financial company.