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| Zhong An Credit |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 24966 |
| Company name | Zhong An Credit |
| Country | China |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | Active |
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| Date SPI disclosed | August 17, 2007 |
| Projected board date | September 17, 2007 |
| Date revised SPI disclosed | August 23, 2007 |
| Previous Events | Invested: May 22, 2008
Signed: January 18, 2008
Approved: November 20, 2007 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Zhong An Credit is an existing company. It is registered as a venture capital company in Shenzhen, China. Its primary business is to provide micro enterprise- and personal lending. Its main operation is in Shenzhen, although the activities are expected to increase in Hebei and Sichuan province in the near future. The purpose of the project is to support the expansion of Zhong An Credit’s microfinance portfolio in a sustainable way. |
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| Project sponsor and major shareholders of project company |
| Zhong An Credit is led by an American investment banker with extensive knowledge of China. Shareholders of its operating entity are a PRC non-bank financial institution and a private individual. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost will be up to $7.5 million, composed of up to $2.5 million of convertible loan and up to $5 million in partial credit guarantee. |
| Location of project and description of site |
| Zhong An Credit is headquartered in Shenzhen, China, with 18 branches in Shenzhen and 1 branch in Hebei Province. It has expansion plans to roll out more branches in Shenzhen, as well as in Hebei and Sichuan Provinces in the short run, and potentially other provinces in China in the long run. |
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| Anticipated development impact of the project |
| The project is expected to support an underserved segment of the market, i.e., micro-entrepreneurs, small businesses and other small cash generation activities that do not currently have access to finance. |
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| IFC's expected development contribution |
| IFC's investment in Zhong An Credit will provide comfort to other investors and local banks, to help the company obtain much needed funding in support of its microfinance activities. IFC will also help building the company’s institutional capacity to enable it to operate commercially and sustainably. |
| Environmental and social issues - Category FI |
This project involves IFC support for the business of Microfinance and has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Considering the nature of activities supported, the project will be required to:
- Develop a procedure relevant to its business process, prior to disbursement, that is satisfactory to IFC, and that ensures that all its investments are screened and processed to avoid supporting activities on the IFC Microfinance exclusion list,
- Identify qualified persons to manage and implement the procedure,
- Demonstrate commitment and resources to implementing the procedure
- Submit a periodic report to IFC as per a format to be provided by IFC |
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| For inquiries about the project, contact: |
Ms. Karen Yu
Zhong An Credit
8/F., Xing Hua Building No. 2018,
Shennan Zhong Rd.,
Shenzhen China 518031
Tel.: +86 755 8369 6509
Fax: +86 755 8369 6024
Email: karenyu81@yahoo.com.cn |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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