Asian Development Bank (ADB), China Education Group Holdings Limited (CEG), and Yantai Institute of Science and Technology (YIST) have signed an agreement for a $200 million equivalent in CNY financing package. The project seeks to enhance higher vocational education in the People's Republic of China (PRC) through climate-resilient infrastructure and promoting gender equality.
The financing includes a loan of $100 million from ADB, and an additional $100 million mobilized from co-financing partners which include the Asian Infrastructure Investment Bank, China Minsheng Bank Corporation Limited Yantai Branch (CMBC), and Bank Sinopac (China) Limited Chengdu Branch (Sinopac). CMBC and Sinopac are participating through ADB’s complementary loan to YIST, a local currency co-financing product offering tenor diversity and reducing currency risk. The funds will be used by CEG to extend its short-term debt maturity and support YIST in constructing a climate-adaptive campus in the Yantai Economic and Technological Development Zone.
The new facilities will enable YIST to expand courses catering to the silver and green economies such as health services, robotics engineering, automation, and intelligent manufacturing. A gender action plan will implement steps including the adoption of a gender diversity and inclusion policy at all CEG’s institutes in the PRC, and training for teachers and counselors.
“We are helping to build a more sustainable future for the next generation by investing in climate-resilient infrastructure and promoting gender-inclusive education,” said ADB’s Director General for Private Sector Operations Suzanne Gaboury. “This marks ADB’s largest private sector investment in education and exemplifies ADB’s commitment to supporting the training of a new generation of workers in the emerging industries that will drive high-quality, sustainable development.”
The PRC’s education sector has experienced significant growth over the past few decades, driven by a strong emphasis on education and a competitive job market. However, there is a mismatch between the skills of graduates and the needs of the labor market. By concentrating on higher vocational education and climate-adaptive infrastructure, this project aims to facilitate the PRC’s transition to a high-quality, green development economy.
“This transformative project will allow us to expand our educational offerings and provide students with a state-of-the-art learning environment that meets the highest standards of sustainability and inclusivity,” said CEG’s Chief Executive Officer Yu Kai. “As the market leader in higher vocational education, we are proud that our new Yantai campus has achieved a two-star rating under the PRC’s Green Building Label.”
CEG is a leader in vocational education services, dedicated to developing highly skilled professionals and strengthening the core competencies of vocational schools. The company focuses on cultivating a “dual-qualified” teaching workforce, establishing open regional academia-industry practice centers, expanding pathways for student development, and driving innovation in international exchange and cooperation mechanisms.
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 69 members—49 from the region.
