MICROCAPITAL BRIEF: IFC, Goldman Sachs Deliver Business Training, $80m in Loan Funds Via Alibaba’s Ant Credit to Support Women Entrepreneurs in China

The International Finance Corporation (IFC), a member of the US-based World Bank Group that offers financial services to businesses and governments in developing countries with the aim of increasing economic growth, will provide a senior loan of RMB 500 million (USD 80 million) to Ant Credit, the business-lending division of Ant Financial Services Group, which is an affiliate of Chinese e-commerce company Alibaba [1]. The funds will be used to provide credit lines to Chinese women who have online business. Ant Credit will on-lend these funds via the internet after assessing potential borrower’s “transactional and behavioral data” from their online business. The funds will be provided through the Goldman Sachs “10,000 Women” Program, which was launched in 2008 to teach business skills and facilitate access to capital for 10,000 women living in low- and moderate-income countries [2].

Lucy Peng, CEO of Ant Financial Services Group, said, “Women are crucial to China’s economic development. They have proven to be trustworthy and passionate entrepreneurs…. We have seen multiple successful stories of women entrepreneurs on our platforms and would like to support them by providing the resources they need to grow their business. By collaborating with IFC and Goldman Sachs 10,000 Women, we are able to expand our services to more women, empowering them to pursue their career goals and reach their potential.”

As of March 31, 2014, Ant Credit reported a total loan portfolio of RMB 190 billion (USD 30.4 million) outstanding to 700,000 small and micro-businesses. As of September 2013, Alibaba reported an operating profit of USD 786 million on revenue of USD 1.78 billion.

In June 2014, IFC reported net income of USD 1.4 billion, total assets of USD 84.1 billion, return on assets of 1.8 percent and total investment mobilization of USD 38.1 billion. As of December 2013, Goldman Sachs reported total assets of USD 912 billion, return on assets (ROA) of 0.87 percent and return on equity (ROE) of 11.0 percent. As of 2015, approximately 2,200 women entrepreneurs from China’s 31 provinces have graduated from 10,000 Women. As of December 2013, the program had served 10,000 women from 43 countries through a network of 90 academic and nonprofit partners.

By Julia Marín, Research Associate

About International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. In June 2014, IFC reported net income of USD 1.4 billion, total assets of USD 84.1 billion, return on assets of 1.8 percent and total investment mobilization of USD 38.1 billion.

About Goldman Sachs Group (GS)

The Goldman Sachs Group (GS) is a US-based financial institution offering investment banking, investment management and financial advisory services to corporations, financial institutions, governments and retail clients. Founded in 1869, the firm is headquartered in the US city of New York and maintains offices in 23 countries. As of December 2013, GS reported total assets of USD 912 billion, return on assets (ROA) of 0.87 percent and return on equity (ROE) of 11.0 percent.

About Alibaba Group

Founded in 1999 in China, Alibaba Group is a family of e-commerce businesses that include consumer e-commerce, online payment platforms, business-to-business marketplaces, mobile applications, banking services and internet television. As of January 2015, US internet company Yahoo owns Alibaba shares worth USD 40 billion. In June 2013, Alibaba launched Yu’e Bao, an online savings and investment product. As of December 2013, Yu’e Bao reported deposits of USD 30.4 billion and 43 million clients. As of 2013, Alipay, the online payment arm of Alibaba, had approximately 300 million users, including 190 million active users of Alipay Wallet. During the quarter ending in September 2013, Alibaba reported an operating profit of USD 786 million on revenue of USD 1.78 billion.

[1] International Finance Corporation Press Release, IFC, Ant Financial Services Group and Goldman Sachs 10,000 Women Launch First Internet-based Gender-Finance Program in China to Boost Women Entrepreneurship 

[2] MicroCapital, March 11, 2014, Goldman Sachs, International Finance Corporation (IFC) Announce $600m Fund for Women-owned Small, Medium-Sized Enterprises (SMEs) 

MicroCapital, January 27, 2014, International Finance Corporation (IFC) to Loan $150m to Yes Bank of India for On-lending to Women-Owned Micro-, Small, Medium-Sized Enterprises (MSMEs)

MicroCapital, November 26, 2013, International Finance Corporation (IFC) Issues $165m in Bonds to Support Women-owned Businesses

MicroCapital, February 8, 2013, International Finance Corporation (IFC), Yes Bank to Create Fund for Small Businesses in India

MicroCapital Universe: International Finance Corporation (IFC)

MicroCapital Universe: Goldman Sachs Group (GS)

MicroCapital Universe: Alibaba Group

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