IFC, a member of the World Bank Group, is leading a $300 million financing package for the Beijing Enterprises Water Group to support the group’s environmental water businesses and promote sustainable economic development in China.
IFC will provide $28 million from its own account and $21 million from the IFC-Managed Co-Lending Portfolio Program, a syndication platform that allows institutional investors to passively participate in IFC’s senior loan portfolio. The remaining $251 million B loan will come from 13 commercial financial institutions. IFC said the strong support that this syndicated loan received from the banks is an indication of the confidence in the company and water sector development in China.
“IFC’s support provides the necessary capital for us to pursue our expansion plans, including improving treatment quality in 12 municipalities across nine provinces of China,” said Mr. Li Yongcheng, Vice Chairman of Beijing Enterprises Group Company Limited and Chairman of BEWG. “This partnership will mean significant environmental and health benefits for local populations.”
China’s economy has experienced rapid growth in the past decade. However, high population density, urbanization, and industrialization have significantly degraded its water resources and led to water shortages. The country’s water resources per capita are approximately only a third of world average. Out of the country’s more than 600 cities, about 400 are suffering from water shortages.
“We believe water holds great potential to support China’s continued economic development,” said Hyun-Chan Cho, IFC’s Head of Infrastructure, Asia. “We are committed to work with our clients, who have established implementation track records and operational capacities, to further improve water and wastewater treatment services and inclusive growth in China.”
IFC will assist BEWG in growing and developing its business to improve water and wastewater treatment standards in China and increase access to reliable and clean water in the frontier regions. The financing will reinforce BEWG’s leading position in China’s water market and help BEWG to grow its business in the region and internationally.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.
BEWG is a flagship enterprise specialized in water environmental protection under Beijing Enterprises Group Company Limited.
The Group, which is is exhibiting later this year at UWT China 2016 in Shanghai, where Waterbriefing is a media partner, provides water management services that covers the whole industry chain of investment, design, construction, operation, technical services, and capital operations.
BEWG’s business portfolio includes urban water, basin water, industrial water, desalinated seawater, hygiene, solid waste treatment, clean energy, and science services.
Listed on the main board of Hong Kong Stock Exchange BEWG is a constituent of the Hang Seng China-affiliated Corporations Index, Hang Seng Mainland 100, Hang Seng Composite MidCap Index, and Morgan Stanley Capital International Index. From 2010-2014, BEWG was ranked the top of China’s Top 10 Influential Water Companies for the fifth consecutive year.
Waterbriefing is a media partner with UWT China 2016. Click here for more information.
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