1. China Development Bank Lends Great
Supports to Energy Conservation and
Development of Renewable Energies
By Qiu Yanwen
Deputy Director
Accreditation Bureau No. 1,
China Development Bank
2. Contents
1 Basic information about China Development Bank
2 Great supports to energy conservation and renewable
energy resources
3 Approaches of project development
4 Credit Policies of China Development Bank
5 Key loan varieties of China Development Bank
3. Basic information about China
Development Bank
• The largest policy-related bank in China
• Founded in 1994, with RMB 50 billion and USD 20 billion of
registered capital and 35 branches and 2 representative offices
around China
• The financial standing and business performance of the bank
has passed the strict audits of international accounting
standards for 5 successive years, and a plurality of financial
indicators of China Development Bank have exceeded those of
domestic and international banks.
– By the end of 2007, the total assets of China Development Bank have
reached RMB 2,831.7 billion, including blance of loans RMB 2,250.2
billion, rate of non-performance asset rate 0.54%, bad loan rate 0.59%.
4. Basic information about China
Development Bank
Break the bottleneck of social Infrastructures
and economic development
Push forward the transformation of
Basic industries
Priorities
economic development mode and
increase the capacity of independent
innovation
Promote harmonious Pillar industries
regional development
People’s
Support the “go global”
strategy of the state livelihood
5. Basic information about China
Development Bank
• Priorities are given to the following industries
– Electric power, highway, public infrastructures, railway,
petroleum & petrochemicals, post and communication,
agriculture, forestry, water conservancy, coal
• Major projects having received the supports of China
Development Bank
– The Three Gorges Hydraulic Power Plant, Xiluodu
Hydraulic Power Plant, Jinping Hydraulic Power Plant,
Dayawan Nuclear Power Plant, Ling’ao Nuclear Power
Plant, National Petroleum Reserve Base, Beijing-Kowloon
Railway, South-to-North Water Transfer, West-to-East Gas
Transmission, Beijing Olympics
6. Great supports to energy conservation
and renewable energy resources
• Projects concerned and supported by China Development Bank
– energy-conservation and emission reduction concerned by the government sector, such
as desulfurization projects of power plants
– development of large-capacity, high-parameter and high-efficiency power units,
promoting large-scaled thermal power plant projects and restricting small-scale thermal
plant projects, development of co-generation projects and innovation of energy-
conservation technologies of thermal plants
– development of hydraulic power, including development of large-scale hydraulic power
plants and small hydraulic power plants of villages
– development of wind farms
– active acceleration of the development of new industries such as biomass power, etc, and
provision of funds to demonstration projects and large-scale development
– urban and rural grid reconstruction and extra-high voltage power transmission projects
The target of 20% reduction of unit energy
consumption during the “15th Five-Year
Plan” set forth by Chinese government
7. Approaches of project development
Recommend
ation of the
state
government
Applications of
Recommendat
power
ion of local
enterprise
governments
group
customers
Independent
development Other
of CDB channels
8. Credit Policies of China Development
Bank
• Loan applicator
– With credit rating above BBB
– With asset-liability ratio not exceeding 80%
• Policy requirements
– The project should comply with the macroeconomic policy,
industrial policy and regional development policy of the state
• Approval requirements
– the project should complete the procedures of authorization,
environmental evaluation, land planning and other concessions; meet
the needs of technical equipment, materials, etc for completion of the
project
• Implement the state’s capital system
– The capital ratio of any power project should not be lower than 20%
9. Credit Policies of China Development
Bank
• Market
– The project should have competitive edge on its target market
• Credit structure
– Pledge of power-rate charging rights
– Living pledge
– Pledge of shareholder’s equity
– Shareholder’s guaranty
– Other third-party’s security of guaranty
• Loan tenure
– The loan tenure for any wind and biomass power projects is generally not
longer than 15 years
– The loan tenure for any thermal and energy-conservation project is generally
not longer than 20 years
– The loan tenure for any oversize hydraulic power project can be extended to
25-30 years
– The loan tenure is generally identical with the construction period of a project
10. Key loan varieties of China Development
Bank
In terms of large-scale energy-conservation projects, hydraulic
power projects and wind power projects, technical-aid loans are
available for early-phase planning
Major projects of the state may receive a certain proportion of
soft loans
Establish special loans for energy conservation and emission
reduction projects and provide prime-based loans
Provide ordinary loans
Provide financing technology support and financial consultancy
by taking advantage of financial product innovation and financial
derivatives
