Baidu MCC Loan (IFC-38237)

Countries
  • China
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
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
Oct 4, 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 BAIDU MICROLOAN CO LTD
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 73.82 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)
$ 74.38 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation 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

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
Financial Intermediary
Financial Intermediary: A commercial 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

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

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

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