ADB Extends $100M Transition Finance Loan to Boost Green Leasing in China – Devdiscourse

In a significant push toward accelerating the green transition in China, the Asian Development Bank (ADB) has signed a loan agreement worth CNY709 million (approximately $100 million) with Far East Horizon Limited (FEHORIZON). The financing aims to expand access to green technologies and support businesses in reducing greenhouse gas emissions through financial leasing.
This marks ADB’s first transition finance loan in the financial leasing sector, a move that underscores the growing importance of innovative financing mechanisms in driving decarbonisation efforts in the People’s Republic of China (PRC).
The loan will be channelled through FEHORIZON’s wholly owned subsidiary, International Far Eastern Leasing Co., Limited (IFEL), which will deploy the funds to support client enterprises in adopting environmentally sustainable solutions. These include smart and flexible energy systems, as well as high-efficiency technologies designed to lower emissions and improve energy use.
ADB Country Director for China, Asif Cheema, highlighted the structural challenges the country faces in transitioning to a low-carbon economy. Despite having supportive policy frameworks, barriers such as limited access to transition finance continue to slow the adoption of cleaner technologies and necessary capital investments.
“ADB’s support strengthens FEHORIZON’s capacity as a transition finance provider,” Cheema noted, adding that the partnership will also include advisory services focused on long-term environmental and economic sustainability. These services aim to help businesses overcome practical challenges in implementing green solutions.
Beyond financing, the project is expected to play a broader role in building institutional capacity. It will enhance technical knowledge and expertise in sustainable finance among FEHORIZON and its partners, creating a stronger foundation for scaling up green investments across industries.
FEHORIZON, a Hong Kong-listed conglomerate since 2011, operates across both financial and industrial sectors in China. Financial leasing is one of its core business areas, with applications spanning urban infrastructure, engineering, healthcare, tourism, and consumer industries.
This latest collaboration builds on a long-standing partnership between ADB and FEHORIZON, which began in 2013. Previous joint initiatives have supported the deployment of clean-fuel buses, improved healthcare financing in rural China, and assisted in pandemic response efforts during COVID-19.
The new loan reflects a broader trend of leveraging financial institutions to drive climate action—bridging the gap between policy ambition and on-the-ground implementation. By enabling businesses to access advanced, low-emission technologies, the initiative aims to contribute meaningfully to China’s long-term sustainability and economic resilience.

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