PSBC Equity (IFC-35461)

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.
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
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
Jun 9, 2015
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
Postal Savings Bank of China
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 300.00 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 Jul 21, 2018

Disclosed by Bank Sep 15, 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.

According to IFC website, the Postal Savings Bank of China (PSBC) is the 5th largest PRC commercial bank in terms of total assets and 5th largest in terms of total deposits as of March 31, 2016. It is a subsidiary of China Post Group Corporation (CPGC). As of March 31, 2016, PSBC had a total of 40,057 business outlets covering all cities in China and 98.9% of the county areas, and had a retail client base of 505 million. Leveraging its large network and broad coverage in urban and county areas in China, PSBC strategically focuses on providing financial services to communities, SMEs and Agriculture/ Rural/ Farmers customers and are committed to meeting the financial needs of its customers.

The project is expected to have a high development impact in the following areas:

1. Promote access to finance for MSMEs and rural sector. 
2. Create jobs, alleviate poverty and boost shared prosperity. 
3. Promote best practice in banking and governance. 
4. Promote SOE equity reform, aiming for a more balanced shareholding structure, a market-oriented business model and higher operation efficiency. 

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.

PSBC is a new client. PSBC is the 5th largest PRC commercial bank in terms of total assets as of March 31, 2016 and was a wholly-ownedsubsidiary of China Post Group Corporation (“CPGC”), a state-owned enterprise owned by the whole people, prior to the pre-IPO private placement. CPGC is principally engaged in domestic and international mail delivery, distribution of publications such as newspapers, journals and books, stamp issuance, postal remittance, confidential correspondence, postal financial business, postal express delivery, postal logistics, e-commerce, postal agency and other businesses conducted in accordance with law. In 2007, PSBC was incorporated during a restructuring of the former postal savings organization. In 2012, PSBC was restructured from a limited liability company to a joint stock bank. In December 2015, PSBC offered approximately 16.92% ownership stake through a private placement which introduced 10 strategic investors in an aggregate amount of approximately RMB45, 140 million (approximately US$7 billion). The shareholding now includes 6 foreign entities (UBS AG, Canadian Pension Plan Investment Board, JPMorgan China Investment Company II Limited, Fullerton Management Pte Ltd, DBS Bank Ltd., and IFC) and 4 domestic companies (China Life Insurance Company Limited, China Telecom Corporation, Zhejiang Ant Small and Micro Financial Service Group Ltd. and Shenzhen Tencent Domain Computer Network Company Limited).


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.

Board Office, Postal Savings Bank of China
Office Address: No. 3 Financial Street, Xicheng District, Beijing, 100808
Contact No.: +86-10-68857891

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/

How it works

How it works