Baidu MCC Loan (IFC-38237)

Countries
  • China
Geographic location where the impacts of the investment may be experienced.
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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 4, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
CHONGQING BAIDU MICROLOAN CO LTD
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Education and Health
  • 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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 73.82 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 74.38 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 500
Converted using 2017-08-02 exchange rate.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 24, 2018

Disclosed by Bank Sep 2, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

Chongqing Baidu Micro-Loan Company Ltd (“Baidu CQ MCC” or the “Company”), wholly owned by Baidu Inc., was established in October 2015 and registered in Chongqing. It mainly provides financing to young people to support their vocational education, by using big data-based credit assessment methodology.

The proposed investment will provide mid-term local currency financing to Baidu CQ MCC to help it expand lending business to support young people to access vocational education, and contribute to both access to finance and access to education in China.

Founded in January 2000 by Robin Li and Eric Xu, Baidu Inc. is a leading Chinese web service company headquartered in Beijing, China and was listed in NASDAQ in 2005. Baidu offers various kinds of web services, including search engine, user generated-content-based knowledge community, social networking, software, mobile related products and services and others.
Baidu CQ MCC is indirectly wholly owned by Baidu Inc., through Baidu Holdings Ltd and Baidu (Hong Kong) Ltd.

Expected Development Impact
Increase Access to Finance in China: the proposed investment is expected to increase access to finance for vocational education students who lack of long working experience or existing wealth/properties and therefore have limited access to bank loans, and also help them establish credit records.

Promote Big Data-based Credit Assessment Methodology: the proposed investment is also expected to promote the usage of big data based lending methodology, which can help improve the efficiency and coverage of financing.

Increase Access to Education in China: the proposed investment is expected to enable more young people in China, who has vocational education needs but has limited financial capacity to pay tuitions at once, to access quality vocational education.
Improve the Employability and Productivity for Young People: through participating the vocational educations, the students can equip themselves with knowledge and skillset urgently needed for employment or productivity improvement.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Founded in January 2000 by Robin Li and Eric Xu, Baidu Inc. is a leading Chinese web service company headquartered in Beijing, China and was listed in NASDAQ in 2005. Baidu offers various kinds of web services, including search engine, user generated-content-based knowledge community, social networking, software, mobile related products and services and others.

Baidu CQ MCC is indirectly wholly owned by Baidu Inc., through Baidu Holdings Ltd and Baidu (Hong Kong) Ltd.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Ms. Jinhua Yan
Baidu Campus, No.10 Shangdi 10th Street,
Haidian District, Beijing, 100085, China
Tel: +86-10-5992 8423
Fax: +86-10-5992 0041

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/

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