International Finance Corporation (IFC), a member of the World Bank Group, is considering providing a convertible loan of $30 million to Concord New Energy Group Limited, a Hong Kong-listed renewable energy firm, according to a disclosure.
The loan is to support Concord in constructing two wind energy projects of 100 MW each in Henan province in China, with an aggregate project cost of $248 million. The proposed investment is expected to receive approval from IFC’s board by the end of January.
IFC expects this project will help displace GHG emissions equivalent to 390,000 metric tonnes of carbon dioxide each year and alleviate the severe air pollution problem in China. It will also go in line with its Intended Nationally Determined Contributions commitment of reduction of 60-65 per cent in emission intensity of China’s GDP by 2030.
As of June 2017, Concord owned and operated 40 wind projects with around 1.2 GW of attributable capacity and 17 solar projects with around 0.3 GW of attributable capacity.
China Wind Power Limited is the largest shareholder in Concord with a 26.64 per cent stake, followed by Huadian Fuxin International Investment Co Ltd with 10.14 per cent. IFC owns around 1.2 per cent of the company.