The Asian Infrastructure Investment Bank (AIIB) has signed a USD$100 million green and blue loan to JC International Finance & Leasing (JC Leasing) to help grow its green and blue finance portfolio in China. This is AIIB’s first blue loan, focused on ocean and coastal preservation and increasing access to clean water resources.
JC Leasing operates in sectors including advanced manufacturing, power and water supply, transportation, education, healthcare and social services. Most of its green and blue portfolio and pipeline relate to the leasing of energy-efficient manufacturing equipment and upgraded public utility infrastructure. The AIIB loan will enable JC Leasing to expand its climate-focused initiatives, aiming to grow its climate leasing portfolio to about 15% by 2028.
Loan proceeds will support blue activities such as water supply and sanitation, along with green activities such as energy efficiency, clean transport and renewable energy.
According to AIIB, JC Leasing does not yet have an Environmental Social Management System. As part of the project, the company will be required to develop and implement an ESMS with the support of the advisory team of the International Finance Corporation of the World Bank. The ESMS will also ensure that the selection, appraisal, approval and monitoring of subprojects is consistent with AIIB’s environmental and social management requirements.
“This ‘blue’ loan marks a significant milestone in AIIB’s efforts to support climate change mitigation and enhance clean water resources,” said Najeeb Haider, Director General of AIIB’s Project and Corporate Finance Clients Department (Global). “The inaugural venture highlights our dedication to pioneering innovative financing solutions in the climate sector. It sets a precedent for future blue finance initiatives, enhancing AIIB’s role in climate change mitigation and environmental sustainability.”
The financing adheres to the Green Loan Principles of the Loan Market Association, ensuring transparency in use of proceeds, monitoring and reporting. AIIB is collaborating with the International Finance Corporation to jointly support JC Leasing.
