DARP SPV CDH SOFI (IFC-43219)

Countries
  • China
Geographic location where the impacts of the investment may be experienced.
Specific Location
Nation-wide
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
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
Jun 18, 2021
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
DINGHUI EQUITY INVESTMENTS MANAGEMENT (TIANJIN) LIMITED COMPANY
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)
$ 62.50 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)
$ 250.00 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 Oct 18, 2024

Disclosed by Bank May 11, 2021

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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 the bank document, "the proposed investment entails IFC’s investment in a special purchase vehicle (“DARP SPV”) to be set up together with Dinghui Equity Investment Management (Tianjin) Limited Company, and/or its affiliate (collectively “CDH”).

The proposed investment will primarily focus on the investment and resolution of non-performing SME portfolios (“NPL Portfolios”), the investment, greening, and resolution of distressed properties (“Single Assets”) in China, and the development of distressed asset market in frontier regions of China. 

The DARP SPV will be registered in China. It is expected that 50% of the total capital of the DARP SPV will be invested in the assets in the frontier provinces in China, and all of its total capital will be used for (i) the investment and resolution of non-performing SME loans in China, and

(ii) the investment, greening, and resolution of distressed properties in China".

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total initial capitalization of the DARP SPV is up to US$250 million, comprised of the senior tranche of up to US$100 million, and equity tranche of up to US$150 million.

IFC will invest up to US$37.5 million in the senior tranche and up to US$12.5 million in the equity tranche of the DARP SPV, with total own account exposure of up to US$50 million.

 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - CDH Fund Investor -
- - - - DINGHUI EQUITY INVESTMENTS MANAGEMENT (TIANJIN) LIMITED COMPANY Undisclosed -

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.

1/ The Project Contact 

Dinghui Equity Investments Management (Tianjin) Limited Company
Alex Wu
Executive Director
+86 10 8507 6998
Alex.wu@cdhfund.com
25th floor, Fortune Financial Center, 5 Dongsanhuan Central Road, Chaoyang District, Beijing 100020, China
http://www.cdhfund.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

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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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