The graphs below present a breakdown of the commercial banks which have been the main financiers of the top 120 coal plant developers between January 2014 and September 2017. Lending figures cover the project finance and corporate finance disbursed to these companies, while underwriting figures cover the issuance of shares and bonds for the same companies.
The table below present a breakdown of the commercial banks which have been the main financiers of the top 120 coal plant developers between January 2014 and September 2017. Lending figures cover the project finance and corporate finance disbursed to these companies, while underwriting figures cover the issuance of shares and bonds for the same companies.
For a full description of the methodology used, you can read this explainer
The graphs below present a breakdown of the commercial banks which have been the main financiers of the top 120 coal plant developers between January 2014 and September 2017. Lending figures cover the project finance and corporate finance disbursed to these companies, while underwriting figures cover the issuance of shares and bonds for the same companies.
The table below present a breakdown of the commercial banks which have been the main financiers of the top 120 coal plant developers between January 2014 and September 2017. Lending figures cover the project finance and corporate finance disbursed to these companies, while underwriting figures cover the issuance of shares and bonds for the same companies.
For a full description of the methodology used, you can read this explainer
The world’s top 120 coal plant developers were revealed by urgewald in June 2017 as part of the launch of the Global Coal Exit List. The list ranks India’s NTPC as number one, with 38,372 MW of new coal capacity planned in India and Bangladesh. Next in line are Chinese companies such as SPIC (31,587 MW), China Datang (28,945 MW), Shenhua (26,014 MW), China Huadian (25,810 MW), China Huaneng (20,750 MW) and China Guodian (17,250 MW).
The top 120 list includes the 56 companies in the world that plan to build more than 3000 MW of new coal capacity. Also included are companies planning new coal plant buildout in 'frontier' countries which currently have little or no coal-fired capacity, but which could become locked into a coal-dependent future for decades to come – countries such as Egypt, which plans to go from 0 to 17,240 MW of coal capacity, Pakistan, planning an 8041% increase in its coal capacity, and Bangladesh, planning a 6384% increase. KEPCO, the world’s 10th largest coal plant developer, aims to build 14,327 MW of new coal power capacity in South Korea and six other frontier Asian and African countries.
The list contains ‘pure play’ coal utilities, as well as very diversified companies. In the latter category is Japan’s Marubeni, the 26th largest coal plant developer worldwide, which is involved in joint ventures which could add 13,000 MW of new coal power capacity in nine countries. Collectively, these 120 companies are behind two thirds of current coal power expansion plans worldwide.
For a full description of the methodology used to select these top 120 coal plant developers, see this briefing from urgewald.
For the January 2014 to September 2017 period, 82% of financing for coal plant development companies was derived via underwriting (the issuance of new shares and bonds) and only 18% via lending. Driving this is the fact that Chinese coal companies source almost all of their financing from bond issues.
Of the total bank lending to coal plant developers, 27% is in the form of project finance loans (which thus comprises 5% of total financing), while 73% is general corporate finance (comprising 13% of total financing).
Standing at 60% of the overall total of financing between January 2014 and September 2017, most of the financing to the top 120 coal plant developers came from Chinese banks, the vast majority of this through the issuance of bonds. Coming second, 8% of the total financing came from Japanese banks, this time mostly through lending to coal plant developers. Indian banks rank third, channelling 7% of the total financing.
Chinese coal companies are the major coal power expansionists – they are behind 45% of the projects currently proposed by the top 120 coal plant developers, and roughly 1/7 of these projects are located outside China. These companies also received the majority of bank financing, netting 66% of the total bank finance for coal developers between January 2014 and September 2017. Indian coal developers rank second, with 9% of the total financing coming their way. Japanese coal plant developers rank third, with 6% of the total financing.
Most of these Asian financial flows stayed within national borders, with banks from a specific country tending in the main to finance coal plant developers from the same country. However, it should be noted that given the international activities undertaken by many of these companies, this financing is fuelling coal expansion globally.
The map on the right shows where the bank finance for the 120 top coal plant developers originates, and where it is heading to, by country.
The table below shows where the bank finance for the 120 top coal plant developers originates, and where it is heading to, by country.