Chengdu, China, April 22, 2009
—IFC, a member of the World Bank Group, is providing a $15 million risk-sharing facility to China’s Chengdu Small Enterprise Credit Guarantee Company that will allow the company to help reconstruct earthquake-stricken Sichuan province and restore people’s livelihoods by supporting small and medium enterprises.
Chengdu CGC is a leading provider of guarantees for lending to SMEs in Sichuan. The IFC facility, which is a follow-up to an equity investment IFC made in the company last year, will enable partner banks, guaranteed by Chengdu CGC, to grant as much as 5.4 billion Chinese renminbi ($790 million equivalent) in new loans to SMEs in earthquake-stricken areas over the next eight years.
“This second collaboration with IFC demonstrates the trust built between the two institutions and is a crucial boost for the SMEs given the added challenge under the global economic crisis,” said Mao Junqiang, Chengdu CGC’s Chairman.
Beginning in October 2008, IFC initiated an advisory-services program to expand the company’s capacity in risk management and internal control, employee training, and product development. This program is one of several funded by a special $1 million earthquake-recovery assistance program established by IFC.
“The Sichuan Earthquake Recovery Program continues to be one of IFC’s highest priorities in China, and Chengdu CGC has demonstrated its commitment to supporting long-term sustainable business recovery and expansion,” said Michael Ipson, IFC Country Manager for China and Mongolia. “This initiative will make a difference in people’s lives, helping create jobs and providing essential goods and services.”
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 had total outstanding guarantees of 3.1 billion renminbi and shareholder funds of 307 million renminbi. For more information, visit
www.cgccd.com
.
