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| JFLC |
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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 | 26449 |
| Company name | Jiangsu Financial Leasing Co.,Ltd. |
| Country | China |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | Pend FAP |
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| Date SPI disclosed | July 22, 2008 |
| Projected board date | August 25, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Jiangsu Financial Leasing Co., Ltd. (JFLC) was established in 1985 in Jiangsu Province of China. JFLC was restructured in 2002 with paid-in capital increased to RMB500 million. JFLC provides leasing services to its customers in sectors of printing, medical devices, shipping, among other industries.
The purpose of the project is to further strength JFLC’s capital base to support its business growth. |
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| Project sponsor and major shareholders of project company |
| JFLC’s equity capital is currently 45.7% held by Jiangsu Transportation Holding Co. (JTHC), 34% held by Jiangsu Yangze Bridge Stockholding Co. (JYBS), 20% held by Jiangsu Guang-jing-xi-cheng Highway Co. (JGHC), and 0.3% held by Suzhou Material Holding Group. Both JYBS and JGHC are controlled by JTHC, a major SOE in Jiangsu Province. |
| Total project cost and amount and nature of IFC's investment |
| It is proposed that IFC make an equity investment for about 10% of the company’s total enlarged share capital. |
| Location of project and description of site |
| JFLC is located in Nanjing, the capital city of Jiangsu Province. It currently does not have other branches. However, the company provides leasing services to its customers throughout the country. |
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| Anticipated development impact of the project |
| The project is expected to have a strong development impact in promoting the development of leasing sector in China. With IFC’s assistance, JFLC is expected to improve corporate governance, management efficiencies, and risk management framework through the introduction of international best practices, becoming a model institution for other leasing companies to emulate. |
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| IFC's expected development contribution |
| In addition to providing capital, IFC will introduce international best practice and global leasing expertise to the company through board participation. IFC will also provide advisory services to JFLC to help improve its institutional capability. |
| Environmental and social issues - Category FI |
| This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. 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 FI exclusion list, and ensures that the use of the leased equipments complies with the applicable National laws; identify qualified persons to manage and implement the procedure; demonstrate commitment and resources to implementing the procedure; when leasing to business activities with potentially significant environmental and social risks (e.g., mining, oil production), inquire and review S&E information available in the public domain and avoid leasing to businesses that have substantial unresolved environmental and social issues. In such cases, the company will also need to satisfy itself that the activity is being undertaken in compliance with the applicable national laws; and 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: |
Mr. Xiong Xiangen, Chairman
26/F, Deji Building
No. 188, Chang Jiang Road
Nanjing 210018
P.R.China
Telephone: (86)(25)86816901
Fax: (86)(25)86816907 |
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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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