| Project description |
| Renshou Village and Township Bank (“RVTB”) is a greenfield microfinance bank registered as a village and township bank (“VTB”) with the approval from the China Banking Regulatory Commission (“CBRC”). Its main operation is in Renshou, Sichuan Province. The purpose of the project is to support RVTB to expand microfinance lending. |
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| Project sponsor and major shareholders of project company |
Currently, the shareholding percentage structure in RVTB is as follows: Leshan City Commercial Bank (“LCCB”) 75%, four Chinese commercial companies (with 4.75% each) 19% and six individuals holding the remaining 6% of the shares.
LCCB was established in 1997 and is headquartered in Leshan Municipality, Sichuan Province. The majority of the shareholders are private investors. |
| Total project cost and amount and nature of IFC's investment |
| The total Project cost is estimated to range from $0.7-1.4m, corresponding to 10-20% of RVTB’s post-money equity capital. |
| Location of project and description of site |
| RVTB is headquartered in Renshou County, Sichuan Province, China. It is a greenfield bank and has no other branches established in China. |
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| Anticipated development impact of the project |
| The vast rural and peri-rural region of Western China has poor access to formal finance. The proposed Project will provide financial services to small and micro customers in the Renshou county in Sichuan Province. IFC’s investment will result in increasing the availability of financial services to this large, underserved group. Supporting productive small businesses will in turn stimulate growth, employment generation and poverty reduction. |
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| IFC's expected development contribution |
| IFC’s investment in RVTB will provide confidence to other investors and local banks to develop rural microfinance, and help RVTB to obtain much needed funding in support of its microfinance activities. IFC will also assist in building the company’s institutional capacity to enable it to operate in a commercial and sustainable manner. |
| 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 Microfinance exclusion list
- Identify qualified persons to manage and implement the procedure
- Demonstrate commitment and resources to implementing the procedure
- Apply the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions
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. Jian Yang
General Manager
Leshan City Commercial Bank
266 Chun Hua Road
Leshan City, 614000, Sichuan
Telephone: (0833)2423050
Fax: (0833)2423025 |
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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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