International Finance Corporations (IFC) subscription on
March 5 to a
issuance by China
waste-to-energy (WTE) projects company, C&G Environmental
Protection Holding will bolster its involvement in
countrys nascent renewable energy sector. But the use of
warrants was not the IFCs preferred option as the
organization tends to invest directly to form long-term
SGD6.3million issuance by the Singapore-listed, Hong Kong-based
C&G Environmental Protection Holdings comprised
34,008,108 unlisted warrants.
finances and operates municipal WTE plants in China via
build-operate-transfer investment schemes. The proceeds are
expected to be used for the maintenance of its five operating
plants, as well as five new plants that will open between 2012
in-house counsel, Lachlan Jackson, told IFLR the
decision to use warrants had been made in an attempt to address
the valuation volatility on the Singapore Exchange.
warrants to make an investment in a company to cope with the
market conditions which made it difficult to agree upfront on
pricing, he said. Other investors could have bought
shares on the secondary markets. But, our mandate is to achieve
development, so we chose the warrant route.
We may use
this instrument again, when we encounter volatile market
conditions, he said.
investment may signal further IFC collaborations with C&G,
Jackson said. C&G had a good track record, he said, and was
willing to work to the World Banks and IFCs
performance standards for environmental and social
the first step in what we hope is a longer-term relationship
with the company in relation to their projects, he
member of the World Bank Group focused on private sector
development, IFC has been a global promoter of sustainable
investments. The deal comes after the China Banking Regulatory
Commissions (CBRC) introduction last month of
guidelines for commercial
lenders to incentivise projects with lower environmental
impacts. IFC has served as an advisor to the CBRC on these
guidelines as well.
measures outline general standards, instructing banks to
evaluate the energy consumption and environmental impact of
proposed projects and encouraged banks to cut loans to
industries that cause high energy consumption or elevated
levels of pollution.
CBRC also indicated that key indices and specific quantitative
measures to rate green lenders are forthcoming.