Beijing/Hong Kong SAR, China, December 15, 2017—
IFC, a member of the World Bank Group, has invested $30 million of equity in China Education Group Holdings Limited (CEG, China Education Group) to help the company expand its employment-linked education programs.
The IFC funding will allow CEG to increase its enrollment capacity by expanding, consolidating and replicating its education model through acquisitions and upgrades of tertiary and vocational education institutions. The funding will also help the company to refurbish and expand its existing campuses.
“IFC’s participation as a cornerstone investor has helped increase China Education Group’s visibility in the market,” said Yu Guo, Co-Chairman of China Education Group. “We will significantly benefit from IFC’s global experience in private education.”
China is making significant efforts to improve access to basic and secondary education. However, there are disparities in vocational and tertiary training, which highlight the need for affordable and quality education services offered by reliable private tertiary education groups.
CEG is a leading large scale Chinese private higher education group. CEG’s three institutions — Jiangxi University of Technology (JUT), Guangdong Baiyun University (GBU), and Baiyun Technician College (BTC) — have a combined student body of over 75,000 students. CEG’s education institutions are industry leaders, and have consistently achieved high academic rankings.
In addition to high academic quality, CEG also has a track record of providing employment-linked education, with graduate employment rates consistently exceeding the national average initial graduate employment rate. In 2016, JUT, GBU and BTC’s employment rates reached 88.1, 96.1 and 99.4 percent respectively, exceeding China’s national average initial graduate employment rate of 77.9 percent.
CEG also offers a strong vocational training program through BTC. Since its inception, BTC has trained over 200,000 rural workers, as well as students from low- and middle-income households in frontier regions.
“Investing in China’s tertiary and vocational education sector will enable students to acquire the necessary skills for tomorrow’s jobs, and boost their employability,” said Patrick Leahy, IFC’s Regional Head of Industry for Manufacturing, Agribusiness Services Asia. “Our partnership with China Education Group aligns well with IFC’s commitment to support the development of China’s tertiary and vocational education sector, prioritizing student reach, affordability and quality employment-linked programs.”
CEG’s curricula and courses in nursing, information technology, tourism management, culinary arts, interior design, precision engineering, and industrial automation engineering are designed on the basis of market research to ensure graduates meet the needs of potential employers.
With over 400 corporate partnerships, CEG collaborates with businesses to offer practical training opportunities to its students including internships, placements, and workplace simulations.
IFC invests in private education in emerging markets to promote access to quality education and create more opportunities for employment. IFC’s active total education portfolio, a blend of debt and equity, is around $700m, invested mainly in tertiary education.
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit