MICROCAPITAL BRIEF: IFC to Invest $500m in China in Renewable Energy, To Develop Microfinance Institutions as Conduits for Rural Finance, Agribusiness

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, reportedly plans to invest up to USD 500 million in China during the 2011-12 fiscal year, with emphases on developing agribusiness and rural finance through microfinance institutions (MFIs) and developing the country’s renewable energy industry. The funding breakdown between the two has not been disclosed. According to Ms Sophie Finkelson, IFC’s vice president for the Asia-Pacific region, a core component of the investments is “helping banks and micro-finance institutions to better understand how to lend to small business and bring global experience to China.”

As of June 2011, IFC’s investments in China included 11 MFIs, two rural commercial banks and one agricultural finance company. In the 2010-11 fiscal year, IFC invested USD 670 million in China. As of June 30, 2010, IFC reported total assets of USD 61 billion and total investment mobilization of USD 18.4 billion to 528 projects.

By Rohan Trivedi, Research Associate

About International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reports net income of USD 1.75 billion, total assets of USD 61 billion, return on assets of 3.1 percent and total investment mobilization of USD 18.4 billion to 528 projects.

Sources and Additional Resources:

[1] China Daily: “IFC to continue investments in China”, http://www.chinadaily.com.cn/cndy/2011-07/28/content_12997478.htm

MicroCapital.org story, April 26, 2011: “MICROCAPITAL BRIEF: People’s Bank of China (PBoC) Publishes 2010 Statistics on Microfinance”, https://www.microcapital.org/microcapital-brief-people%E2%80%99s-bank-of-china-pboc-publishes-2010-statistics-on-microfinance/

MicroCapital.org story, April 8, 2011: “MICROCAPITAL BRIEF: MicroCred Holding, MicroCred China Receive Capital Increases Totaling $31m, Including Participation From AXA Belgium, Developing World Markets, IFC, KfW”, https://www.microcapital.org/microcapital-brief-microcred-holding-microcred-china-receive-capital-increases-totaling-31m-including-participation-from-axa-belgium-developing-world-markets-ifc-kfw/

MicroCapital.org story, January 9, 2009: “MICROCAPITAL STORY: The Push and Pull of China’s Microfinance Expansion”, https://www.microcapital.org/microcapital-story-the-push-and-pull-of-chinas-microfinance-expansion/

MicroCapital.org story, February 5, 2008: “MICROCAPITAL BRIEF: International Finance Corporation (IFC), a Member of the World Bank Group, Extends $2.5m Loan to Zhong An Credit, A Chinese Microfinance Institution”, https://www.microcapital.org/microcapital-story-international-financial-corporation-ifc-a-member-of-the-world-bank-group-extends-25m-loan-to-zhong-an-credit-a-chinese-microfinance-institution/

MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

 

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