JD Finance Loan (IFC-40226)

Regions
  • East Asia and Pacific
Where the impacts of the investment may be experienced.
Countries
  • China
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
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
Mar 16, 2018
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 LIANGJIANGXINQU SHENGJI MICROFINANCE COMPANY
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 92.20 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. 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, converted to USD$. Please see updated project documentation 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

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
  • International Finance Corporation (IFC)
Private Actors
  • CHONGQING LIANGJIANG NEW AREA SHENGJI MICRO-LOAN CO., LTD. -- Financial Intermediary

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

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/

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