JD Finance Loan (IFC-40226)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • China
Geographic location where the impacts of the investment may be experienced.
Specific Location
Chongqing City
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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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
Mar 16, 2018
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 LIANGJIANGXINQU SHENGJI MICROFINANCE COMPANY
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • 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)
$ 92.20 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.
Loan Amount (USD)
$ 92.20 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)
$ 44.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 16, 2018

Disclosed by Bank Aug 15, 2017

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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.

The proposed investment entails a 3-year, up to RMB 300 million (USD 44 million) LCY senior loan to JD Chongqing Microcredit Company (“JD CQ MCC”), which is the dedicated lending company for the agri-loans under JD Finance. The investment will be secured by the guarantee from its ultimate parent and controller – Beijing JD Financial Technology Holding Co., Ltd. (“JD Finance”).

(i) Expand financial access to the most underserved agricultural MSMEs;
(ii) Promote big data based agri-lending: through introducing the advanced internet and mobile based financial services to agricultural MSMEs, and accumulating the necessary data for framers and MSMEs along the supply chain, the proposed business model could potentially bring revolutionary change to the traditional rural finance service approach and lay a solid ground for the future big data based agri-lending;
(iii) Serve as a pilot program and catalyst to encourage other FIs and ecommerce companies to explore the feasible service model for China rural market.


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.

JD CQ MCC was established in January 2016, wholly owned by JD Finance. As of May 31, 2017, its registered capital was RMB600 million (US$88 million); its total asset was RMB1.2 billion (US$170 million); and its outstanding loans of RMB1.1 billion (US$166 million).

 

JD Finance was established in 2013 by JD.com. JD Finance has several business sectors including supply-chain finance, agri-finance, consumer finance, payment, crowd-funding, wealth management, etc. JD.com was founded in 2004 and becomes the largest online B2C merchant in China.


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.

Project Contact: Ms. Hao, Qiujing
Funding Manager, JD Chongqing Microcredit Company
Telephone No.: +861089189140
Email Address: haoqiujing@jd.com
Office Address: Level 17, Tower A, No. 18 Kechuang-11 Street, Yizhuang, Beijing, China
Website: http://jr.jd.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/

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