Fenglin Green

pending

 The proposed IFC investment is a green loan of up to US$50 million to finance the Guangxi Fenglin Wood Industry Group Co., Ltd., (“Fenglin” or the “Group”) for the newly established factory of a Super-strength Particle Board (SSPB) factory (“Project” or “Qinzhou plant”) with a 500,000m3 per annum particle board capacity in Qinzhou, Guangxi Province, China.  Fenglin is an existing IFC portfolio client. Previous five investments are #39801, #35042, #26490, #25299, and #22165. IFC investment (#35042) was a corporate loan while the other four loans were dedicated to a specific manufacturing plant. The #39081 is IFC’s latest loan used for the development of a greenfield SSPB plant in Nanning (Guangxi Province) disclosed in 2017 - https://disclosures.ifc.org/project-detail/ESRS/39801/fenglin-iii. IFC has supervised the environmental and social (E&S) performance of Fenglin since 2014. Its E&S performance has been satisfactory.  The production process of the newly established SSPB factory involves blending chipped raw wood fiber with adhesives and bonding agents, drying, pressing and extruding. The SSPB manufacturing line is fully automated, with manual labor limiting itself at the front end (handling of raw waste wood fiber inputs) and at the back end (handling of finished panels) of the production process. The project uses waste wood (comprising of timber harvest residues, chips, and offcuts from the wood processing sector) as raw material and biofuel. Using international green bond standards, the project is expected to promote environmentally sustainable and resilient growth in China by improving resource efficiency through (i) reducing GHG emissions at Qinzhou plant and (ii) increasing the recycling of scraped wood.