IFC and Chengdu CGC Join Forces to Support Sichuan Earthquake Reconstruction
In Beijing:
Zhu Wenqin
Phone: + 86 10 5860 3130
E-mail: WZhu@ifc.org
In Hong Kong:
Andrew Mak
Phone: +852 2509 8110
E-mail: AMak@ifc.org
In Washington, D.C.:
Lotte Pang
Phone: +1 202 458 0952
E-mail: LPang@ifc.org
Chengdu, China, October 30, 2008—IFC,
a member of the World Bank Group, and China’s Chengdu Small Enterprise
Credit Guarantee Company today signed a package of agreements to assist
in the reconstruction of the Sichuan province and help restore people’s
livelihoods by supporting local small and medium enterprises. The collaboration
is the first project under IFC’s Sichuan Earthquake Reconstruction Program.
Under the agreement, IFC will provide
RMB100 million in new equity to Chengdu CGC, one of the leading guarantee
providers for lending to SMEs in Sichuan. IFC’s investment will enable
Chengdu CGC to support up to RMB1 billion (US$150 million) in new loans
to SMEs in earthquake-stricken areas of Sichuan.
“We are grateful for this new
collaboration with IFC, at a time when we are called upon to play a special
role in economic recovery. IFC’s support will provide crucial stimulus
to help local SMEs get back on their feet,” said Mao Junqiang, Chengdu
CGC’s Chairman.
IFC will also implement an advisory
service program to expand the company’s capacity in risk management and
internal control, employee training, and product development. The advisory
support is funded by a special $1 million earthquake recovery program established
by IFC.
“The Sichuan Earthquake Recovery Program
is one of IFC’s highest priorities in China, and partnering with Chengdu
CGC will support long-term sustainable business recovery and expansion,”
said Lars Thunell, IFC Executive Vice President and CEO. “This initiative
will make a difference in people’s lives, helping create jobs and providing
essential goods and services.”
“Impacted by the earthquake and the
international financial crisis, local SMEs are confronted with unprecedented
challenges. There couldn’t be a more important time for our two
institutions to deliver this support,” said Yan Guosong, Chengdu CGC General
Manager.
About IFC
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $16.2 billion in fiscal 2008, a 34 per cent increase over the previous
year. For more information, visit www.ifc.org.
About the Chengdu Small Enterprises Credit Guarantee Company
Chengdu CGC was established in 2001. The company provides guarantees for
loans extended by local rural credit cooperatives and commercial banks
to SMEs in the greater Chengdu area. In 2008, CGC has total outstanding
guarantees of 4 billion renminbi and shareholder funds of 307 million renminbi.
For more information, visit www.cgccd.com.
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