The Baicheng project is a 49.5-megawatt wind farm on agricultural land in Jilin Province, north-eastern China. In 2010, HSBC Global Banking and Markets structured a project finance deal to fund the wind farm, which will save more than 100,000 tonnes of carbon dioxide a year for the next two decades.
We worked with our partners, including Bank of Communications, one of the largest Chinese banks, on an effective financing model and, as a result, this was the first non-recourse project financing agreed for a wind farm in China.
China was recognised in 2012 by Bloomberg as the world's largest wind-power market. This transaction establishes a scalable model for wind-sector project financing there and opens further opportunities to develop renewable energy. It also demonstrates HSBC's commitment to finance the transition to a low-carbon economy with innovative financing solutions.