Crédit Agricole CIB successfully closed its first green loan in China for EDF Lingbao
This one-year fixed asset green loan of RMB 122 million will be used for refinancing existing construction debt and financing the expansion of the EDF (Electricité de France) Lingbao district project.
EDF Lingbao is a joint-venture between a majority owner EDF and the city of Lingbao which was formed for the purpose of developing a district heating and biomass project. Lingbao is the second district heating project EDF is constructing in the Chinese province of Henan, replacing inefficient coal boilers with a central heating system fuelled among other biomass products by wastewood products from neighbouring orchards and mushroom farms.
Crédit Agricole CIB China together with EDF elected to finance the construction as a green loan in line with the 2018 Green Loan Principles issued in March 2018 by the Loan Market Association and the Asia Pacific Loan Market Association, taking into account the positive environmental benefit of the project.
Philippe Pellegrin, President of Crédit Agricole CIB (China) Limited, commented: "Crédit Agricole CIB is pleased to extend our support to our long-standing client EDF through this green fixed asset term loan. Qualifying this loan according to the 2018 Green Loan Principles is a first for both companies in China, and it demonstrates our commitment to the values of our respective groups.” .
Dominique Duval, Head of Sustainable Banking for Asia-Pacific, added: "Crédit Agricole CIB is very proud of supporting EDF in its investments into a low carbon economy. This transaction demonstrates the capabilities of both institutions to invest into and innovate for a more sustainable environment." .