Xiaomi MCC Loan (IFC-40334)

Countries
  • China
Where the impacts of the investment may be experienced.
Specific Location
Chongqing City, China
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
Proposed
Bank Risk Rating
U
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
Dec 7, 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 XIAOMI MICROFINANCE CO., LTD.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • Small & Medium Enterprises
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
Advisory Services, Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 120.00 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)
$ 120.00 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 Jan 10, 2020

Disclosed by Bank Sep 20, 2018


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Project Description

The investment entails a senior loan to Chongqing Xiaomi Microfinance Co., Ltd. (“Xiaomi MCC”, or the “Company”). Xiaomi MCC, wholly owned by Xiaomi Corporation, was established in June 2015.

Xiaomi MCC provides consumer loans and installment loans using its big data-based credit assessment methodology. Along with its new retail strategy, Xiaomi MCC is expanding its product offering to micro, small, and medium enterprises (“MSMEs”). The proposed senior loan will be on-lent to MSMEs in low tier cities and counties to support their business operation.

Moreover, the advisory services proposed to Xiaomi MCC including (i) promoting digital MSMEs lending in domestic market; and iii) entering oversea emerging markets and sharing digital financial inclusion business cases.         
Investment Description

Xiaomi MCC is registered in Chongqing, China, and provides loans to borrowers throughout the country. The IFC Loan will be used for on-lending to MSMEs located in low tier cities and counties to support their business operation.

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 Actor Relationship

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

Private Actors Description

Xiaomi MCC is indirectly wholly owned by Xiaomi Corporation, through Xiaomi Finance Inc. and Xiaomi Finance HK Limited. Founded by Mr. Lei Jun in 2010, Xiaomi Corporation is a mobile internet company developing smartphones and smart hardware/devices and providing internet services. Xiaomi Corporation was listed in HK Stock Exchange on July 9, 2018.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Xiaomi Inc Parent Company -

Contact Information

1/ The Project Contact

Chongqing Xiaomi Microfinance Co., Ltd. 
Ms. Yuru Yang 
Business Manager 
+86-10-60606666 
yangyuru@xiaomi.com 

2/The IFC Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

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/