Loan to Minsheng Financial Leasing Co. Ltd. for the Green Transport Finance in the People’s Republic of China (Loan No. 3558/ Investment No. 7517)

The Asian Development Bank (ADB) engaged with the financial leasing sector since 2012 to facilitate financing for the deployment of clean buses in the People’s Republic of China (PRC). This evaluation focuses on the loan provided to Minsheng Financial Leasing Co. Ltd. (MFL) in August 2017. ADB was concurrently implementing a technical assistance project to support clean buses and to enhance the additionality of the investments. The project supported the strategic priorities identified by the Midterm Review of Strategy 2020 as well as the PRC country partnership strategy priorities of managing climate change, the environment, and supporting inclusive economic growth. The project also supported ADB’s Sustainable Transport Initiative, which focused on creating accessible, safe, affordable, and environmentally friendly transport systems. The nonsovereign loan to MFL aimed to finance green transport infrastructure, help MFL diversify its funding sources, and improve its asset–liability profile. Ultimately, around 1,000 electric buses were leased through the loan. The project only partially achieved its intended objectives, and this limited success can be mainly attributed to issues with project scoping, design, and the coherence of ADB’s engagement.