Beijing, February 25, 2004
—The International Finance Corporation, the private sector arm of the World Bank Group, has agreed to invest $2 million (RMB 16.5 Million) equity in AnJia Group Holdings. The Shanghai-based company is a leader in China’s rapidly growing mortgage origination and servicing industry. Venture TDF China, a current shareholder in AnJia, has agreed to invest an additional $1 million. IFC’s investment is the first stage in AnJia’s current round of financing.
The project will help home buyers gain access to better housing finance services in China. IFC’s investment will help AnJia achieve higher standards of performance, expand its operations, and set a model for the development and standardization of the mortgage origination and servicing industry in China.
Shanghai has been leading the rapid development of the private housing market in China, establishing the opportunity for mortgage companies and banks to expand operations through resale home mortgages. The emergence of independent third party originators such as AnJia plays a vital role in facilitating the healthy development of the mortgage industry. Through innovations in mortgage origination and servicing, AnJia provides banks with critical mortgage sourcing capabilities that will help them better assess and control home loan transaction risk AnJia strives to make mortgage lending in China more efficient, secure, and accessible.
“As a global leader in supporting mortgage finance institutions in developing countries, IFC brings not just capital to this project but broad experience and leading industry expertise that can help AnJia to set industry standards and stay ahead of changing demands in a rapidly developing market.” said Javed Hamid, IFC director of East Asia and Pacific. During IFC’s last fiscal year, it committed over $100 million for projects that reinforce links between the housing sector and the financial markets.
Alan Zhang, AnJia’s chairman and founder, said, “It is significant that IFC, the premier private sector investor in developing economies, has chosen to participate in AnJia’s future growth with this investment. It exhibits a recognition of the huge potential of China’s housing finance sector and AnJia’s established leadership in the emerging mortgage finance industry. We are very pleased to have IFC’s expertise and support in our determined drive to provide the most efficient, secure, and comprehensive housing finance solutions to consumers in Shanghai and elsewhere in China.”
Venture TDF China is a venture capital firm that targets market leaders. It invests in companies at different stages of development, focusing on the sectors in China that have strong and sustainable growth prospects. These include information technology, media, telecommunications and financial services. Venture TDF China is a value-added investor that leverages its capabilities, resources and network in Greater China, Singapore and the United States.
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
