Chengdu, China, October 30, 2008
—IFC, a member of the World Bank Group, and China’s Chengdu Small Enterprise Credit Guarantee Company today signed a package of agreements to assist in the reconstruction of the Sichuan province and help restore people’s livelihoods by supporting local small and medium enterprises. The collaboration is the first project under IFC’s Sichuan Earthquake Reconstruction Program.
Under the agreement, IFC will provide RMB100 million in new equity to Chengdu CGC, one of the leading guarantee providers for lending to SMEs in Sichuan. IFC’s investment will enable Chengdu CGC to support up to RMB1 billion (US$150 million) in new loans to SMEs in earthquake-stricken areas of Sichuan.
“We are grateful for this new collaboration with IFC, at a time when we are called upon to play a special role in economic recovery. IFC’s support will provide crucial stimulus to help local SMEs get back on their feet,” said Mao Junqiang, Chengdu CGC’s Chairman.
IFC will also implement an advisory service program to expand the company’s capacity in risk management and internal control, employee training, and product development. The advisory support is funded by a special $1 million earthquake recovery program established by IFC.
“The Sichuan Earthquake Recovery Program is one of IFC’s highest priorities in China, and partnering with Chengdu CGC will support long-term sustainable business recovery and expansion,” said Lars Thunell, IFC Executive Vice President and CEO. “This initiative will make a difference in people’s lives, helping create jobs and providing essential goods and services.”
“Impacted by the earthquake and the international financial crisis, local SMEs are confronted with unprecedented challenges. There couldn’t be a more important time for our two institutions to deliver this support,” said Yan Guosong, Chengdu CGC General Manager.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 per cent increase over the previous year. For more information, visit
www.ifc.org
.
About the Chengdu Small Enterprises Credit Guarantee Company
Chengdu CGC was established in 2001. The company provides guarantees for loans extended by local rural credit cooperatives and commercial banks to SMEs in the greater Chengdu area. In 2008, CGC has total outstanding guarantees of 4 billion renminbi and shareholder funds of 307 million renminbi. For more information, visit
www.cgccd.com
.
