CHUEE II

completed

_x000C_The proposed project (CHUEE II or the project) is part of IFC’s strategy for China which entails scaling up its energy efficiency (EE) program in China. The project, CHUEE II, comprises two components:- Investment: An IFC investment in RMB of up to $170 million equivalent in Risk Sharing Facilities (RSF) for 2-3 participating commercial banks in China. The project would provide risk sharing for the creation of an additional new portfolio of approximately RMB 2.6 billion ($347 million equivalent) dedicated to industrial corporates for energy efficiency upgrades. - Advisory Services: A scaling up of the existing advisory services program to complement the new investment program. The Advisory Services Program will be implemented in partnership with the dedicated CHUEE team of PEP-China based out of IFC’s Beijing office. CHUEE II is a follow-on IFC investment following the successful implementation of CHUEE I (project 24631) with Industrial Bank (IB) and Bank of Beijing (BoB). The CHUEE I risk sharing facility is proven to be an effective way to mobilize, stimulate and leverage financing from commercial bank partners to energy efficiency (EE) improvement projects. Since the start of the CHUEE I with IB, the RSF has been utilized faster than expected due to the strong demand in the market for EE project financings. The objective of this project is to scale up IFC’s investment in this sector by committing additional IFC risk-capital and increasing the leverage on the Global Environment Facility (GEF) first loss allocation relative to CHUEE I. The project will be offered to a number of commercial banks in China including.