International Finance Corp (IFC) has launched its first renminbi-denominated bond in Hong Kong, using the proceeds to finance a clean technology project in China.

The five-year bond has a 1.8% per annum interest rate and raised CNY150m (approximately $23m) to support technology that helps promote energy efficiency and lower greenhouse gas emissions.

IFC said that it is the first issue by a supranational to raise funding from offshore renminbi market for a specific mainland project.

The proceeds will help finance the expansion of Beijing Shenwu Thermal Energy Technology Company’s operations.

Shenwu designs and manufactures industrial furnaces using regenerative high temperature air combustion technology that lowers energy use and carbon dioxide emissions in steel and petrochemical production.

IFC’s loan to Shenwu is expected to avoid 1.65 million tons of carbon dioxide emission per year.