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IFC Partners with Lionbridge to Support MSME Growth in China

Beijing, May 19, 2016 — IFC, a member of the World Bank Group, and Lionbridge Financing Leasing (China) Co., Ltd, have pledged to support micro, small and medium enterprises (MSMEs) in China, to drive growth and generate jobs.
IFC will provide a three-year senior loan of up to RMB130 million (US$20 million) to Lionbridge to support its financial leasing portfolio expansion and reach more MSME owners.
“Promoting inclusive and sustainable growth in China by working with our clients is a strategic priority for IFC,” said Marcos Brujis, IFC’s Director of Financial Institutions Group. “This partnership with Lionbridge will significantly increase access to finance for MSMEs in frontier regions, driving economic growth and job creation.”
Lionbridge strategically targets MSMEs in transportation and healthcare, providing essential funding to truck drivers, transportation operators and hospitals in China’s frontier regions. In addition to its investment, IFC will provide advisory services that focus on capacity building to improve Lionbridge’s credit and operational risk management system. The partnership was formed in response to the upward demand for funding solutions with moveable assets and actively seeks to develop the financial leasing sector sustainably.
“MSMEs are important participants of economic activities and have great potential to grow,” said Mr. Wan Jun, CEO of Lionbridge. “By collaborating with IFC, not only are we expanding funding sources, but more importantly, we will be able to learn from global best practices, improve our business model and set a good example for ourfinancial leasing peers in China; so as to better serve the underserved segment.”
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
About Lionbridge
Lionbridge was established in April 2012. It is a foreign-invested financing leasing company approved by the Ministry of Commerce, with the registered capital of RMB1.5 billion (approximately US$237 million ). In September 2014, Lion Bridge was acquired by the U.S. private equity firm-Bain capital with 80% shares. As of end 2015, its total assets were at RMB 7 billion (approximately US$1 billion), , Lionbridge has served more than20,000 truck drivers and more than 300 transportation companies and small hospitals in towns and rural areas. Lionbridge is one of the leading promoters of MSME financial leasing in the industry. For more information, please visit www.sqcapital.cn