|
|  |
| BoB RI |
|
| 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 | 26114 |
| Company name | Bank of Beijing (formerly BCCB) |
| Country | China |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | ProjTeam ID |
|
| Date SPI disclosed | May 17, 2007 |
| Projected board date | June 18, 2007 |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Subject to due diligence, negotiations, and regulatory approval, IFC is considering an investment package of up to $175 million in Bank of Beijing (the Bank). The investment package consists of the following:
- long-term loans and guarantees to support Housing finance, SME, Energy Efficiency and Trade related lending operations, and
- a potential equity investment in the Bank to support its initial public offering. |
|
| Project sponsor and major shareholders of project company |
| The Bank was established in 1996 as a city-level joint-stock commercial bank through the consolidation of 90 urban credit cooperatives in the Beijing Municipality. It currently has over 4,500 employees and a network of 123 outlets throughout Beijing’s eight districts as well as two rural districts. The Bank’s shareholding structure is quite diversified. ING, the Bank’s strategic partner, is currently the largest shareholder with a 19.9% stake. The Beijing State Asset Management Company, on behalf of the Beijing Municipal Government, is the second largest shareholder with a 12.89% stake while Beijing Energy Investment Group is the third largest shareholder with a 7.4% stake. IFC, with a 5% stake in the Bank, is the fourth largest shareholder. Other shareholders include a large number of individual shareholders (over 28,000) and SMEs. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $175 million. |
| Location of project and description of site |
| The Bank operates through 123 branches in the Beijing metropolitan area, and has opened a branch in Tianjin, 120 km to the east of Beijing. |
|
| Anticipated development impact of the project |
The project will assist the Bank’s efforts in:
- developing and expanding relevant lending products in areas of housing, SME, sustainable finance and trade; and
- going public and accessing capital markets to fund its growth.
The project will support bank’s efforts in developing new initiatives and products as well as strengthen its capital base. |
| IFC's expected development contribution |
| IFC’s major contributions to BOB’s development are expected to be in the areas of SME banking, product innovation and corporate governance strengthening by assisting the bank in introducing innovative products and providing relevant training and advisory services. |
| 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. During appraisal, IFC will analyze the FI portfolio and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of:
- the IFC Exclusion List;
- the applicable National Social and Environmental Laws and regulations; and/or
- the IFC Performance Standards.
While the Bank is an existing client as this project will follow IFC's revised Environmental and Social Review Procedure, IFC will also review the capacity of the FI to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.
Based on the review, the project will be required to:
- develop an, or upgrade, if necessary, any existing Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC;
- identify responsible, qualified persons to manage and implement the SEMS;
- commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements;
- submit a periodic report to IFC as per a format to be provided by IFC. |
|
| For inquiries about the project, contact: |
Ms. Yuanyan Fan
Bank of Beijing
Bank of Beijing Building, No. 17, Financial Street
Xicheng District, Beijing, PRC, 100032
Telephone: 86-10-66223619
Fax: 86-10-66426519 |
|
| 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 |
|
|
|
|