The International Finance Corporation (IFC), a member of the World Bank Group, is looking to extend a loan of up to $150 million to Chinese private waste-to-energy (WtE) company Canvest Environmental Protection Group Company Ltd, it said in a disclosure.
As part of the proposal, IFC is proposing a five-year loan package which includes a loan of up to $50 million and mobilization of up to $100 million to Canvest to support its early development of WtE projects in China and possibly, other developing countries.
“Total project cost is estimated at about $853.8 million, which is to be financed by a combination of Canvest’s internal cash generation, IFC A Loan, mobilization, and domestic bank loan. IFC’s A Loan will be 6% of Company’s total capex need during 2H2017-2019,” said IFC.
IFC has previously extended an HK$465 million ($59.2 million) loan to Canvest in April 2016, which saw the former taking a 4.9 per cent ownership in the latter.
Canvest is mainly a family-owned business, with the Lai family holding a 54.6 per cent stake, while other main investors include Shanghai Industrial Holding Ltd and AEP Green Power, which hold 14.5 per cent and 5.6 per cent, respectively.
Currently, Canvest is working on 17 projects and the daily MSW (municipal solid waste) processing capacity of all the operating, secured and announced projects has reached 26,040 tonnes, it said on its website.
Going forward, Canvest will expand its waste-to-energy business mainly through developing greenfield projects or pursuing acquisitions.