ADB, BOCFL Sign $80 Million Loan for Sustainable Urban Transport in PRC

News Release | 17 June 2020

BEIJING, PEOPLE’S REPUBLIC OF CHINA (17 June 2020) —  The Asian Development Bank (ADB) has signed an $80 million loan with Bank of Communications Financial Leasing Co. Ltd. (BOCFL) to fund the lease of new energy buses (NEBs), which will contribute to the promotion of sustainable urban transport in the People’s Republic of China (PRC).

The loan deal was signed by the Director of ADB’s Private Sector Financial Institutions Division Christine Engstrom and BOCFL’s Chairman Zhao Jiong.

“The extensive use of private cars in cities has caused congestion, as well as air and noise pollution—all of which can be reduced if we encourage residents to shift to sustainable modes of public transport,” said Ms. Engstrom. “The new energy buses from the project, which include battery-powered electric buses and buses running on fuel cells with zero direct emissions, will not only increase people’s mobility and access to services, but also contribute to lessening pollution in the country, reducing greenhouse emission and leading to a green path of recovery from the COVID-19 pandemic.”

“Sustainable public transport fueled by new, clean energy sources is a crucial building block of green economic growth and development in the PRC,” Mr. Zhao said. “BOCFL will continue to play an active role in promoting green industries and the circular economy, and maintain our efforts to support energy conservation and environmental protection by expanding operations in green public transport, new energy vehicles, renewable resources, and clean energy.”

BOCFL is one of the leading financial leasing companies in the PRC. It has had substantial experience in financing green buses, maintaining close relationships with electric bus manufacturers and bus operators in the PRC. It is a wholly-owned subsidiary of the Bank of Communications.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.