Green Urban Financing and Innovation Project

The project development objective of the Green Urban Financing and Innovation Project is to increase access to sustainable, long-term financing for selected green urban investments benefiting local governments in the Yangtze River Delta Region.It has three components. First component, Facility Credit Line will provide initial low-cost long-term funding and accelerate the Shanghai Green Urban Financing and Services Co., Ltd (FSC) facility start-up.This component will finance the debt arm of the facility (that is, the on-lending function) at the onset of the project and will focus on covering construction risks in the early period of subproject execution; Second component, Credit Enhancement for Risk Management will enhance the credit capacity of the FSC by enabling the company to withdraw funds when its sub projects fail to fulfil their repayment obligation to the FSC on a due date as a result of liquidity shortfall; Third component, Institutional Strengthening and Project Management supporting capacity building within the Facility to scale up operations, technical assistance and knowledge sharing.It will support the setting up of a fully staffed entity with trained personnel in all departments; ramped-up functions (including business development, financial structuring departments, and technical operational departments) that would support clients in subproject identification; planning and preparation; and obtaining of credit rating and green bond principle certification for the facility.