CHG Loan (IFC-37869)

Countries
  • China
Where the impacts of the investment may be experienced.
Specific Location
Chongqing, Chengdu, Sichuan
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Apr 28, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Chongqing Economic and Technological Development Zone Houze Small Loan Co.,Ltd
The holder of the loan, grant, or other investment.
Sectors
  • Construction
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 9, 2018

Disclosed by Bank Mar 25, 2016


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Project Description

Established in 2013 in Chongqing, China and sponsored by Clearwater Capital Partners, LLC (“Clearwater”), Chongqing Economic and Technological Development Zone Houze Small Loan Co.,Ltd (“CHG” or the “Company”) focuses on providing debt financing to privately-owned residential housing developers in frontier regions in China.

The proposed project consists of a RMB denominated senior loan to CHG and potential direct equity investment to the holding company of CHG. The Project represents an IFC effort to support the supply side of private sector led affordable housing in frontier regions in China, by working with an IFC global partner to extend credits to small and medium size local housing developers.

Provides liquidity to build and complete private sector led affordable housing projects to enable urbanizing rural population, including migrant workers, and low to middle income urban households in frontier regions in China to afford higher quality housing; Promote and expand an alternative credit solution model to better serve the unmet financing demand from private sector led affordable housing projects in frontier regions in China. Increase awareness and promote adoption of E&S standards among the small to medium size real estate developers in China.

Investment Description
  • International Finance Corporation (IFC)

The project sponsor is Clearwater Capital Partners, LLC, an Asia-dedicated credit and special situations investment firm established in 2001. It now has approximately US$1.5 billion assets under management and capital commitments across 5 private equity structured funds and a hedge fund. The firm has 6 offices in Mumbai, Chongqing, Seoul, Singapore, Hong Kong and New York and 43 employees.

CHG is ultimately controlled by Clearwater. The controlling shareholder is Clearwater Fund IV, with 76.9% equity stake. In July 2012, Clearwater Fund IV secured US$575 million capital commitments from corporate and state pension plans, fund of funds, endowments, foundations and family offices in the U.S., Europe and Asia.

IFC Equity US$ 20 million

Private Actors

CHG is ultimately controlled by Clearwater. The controlling shareholder is Clearwater Fund IV, with 76.9% equity stake. In July 2012, Clearwater Fund IV secured US$575 million capital commitments from corporate and state pension plans, fund of funds, endowments, foundations and family offices in the U.S., Europe and Asia.

Contact Information

Chongqing Economic and Technological Development Zone Houze Small Loan Co.,Ltd
Unit 33-11, Metropolitan Oriental Plaza, No. 68 Zourong Road
Yuzhong District, Chongqing
P.R. China
Tel: 86-23-6037-2380
Fax: 86-23-6037-2378
Web: http://www.clearwatercapitalpartners.com/

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/