MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $31m to Fullerton Credit to Support Small, Medium-Sized Enterprises (SMEs) in China

The International Finance Corporation (IFC), a member of the US-based World Bank Group, has announced an investment of CNY 186 million (USD 30.5 million) in Fullerton Credit (FC), a subsidiary of Singapore-based Fullerton Financial Holdings (FFH), to support financial access to small and medium-sized enterprises (SMEs) in western and central provinces of China [1]. The investment will be made in the form of two five-year renminbi-denominated loans. In 2012, IFC initiated a similar loan to FC in the amount of CNY 315 million (USD 52 million); that amount was fully disbursed as of March 2013.

FC was established in China by FFH to support “small-business-financing” in the country. As of 2012, FC reported total assets of SGD 238 million (USD 191 million), 24 branches and a return on equity (ROE) of 1 percent. As of the same year, FFH reported total assets of SGD 41 billion (USD 33 billion), a loan portfolio of SGD 16 billion (USD 13 billion) and total deposits of SGD 12 billion (USD 10 billion). FFH is a subsidiary of Temasek Holdings, an investment firm owned by the government of Singapore.

As of 2013, IFC reports 184 member countries and total assets of USD 77.5 billion.

By Nisha Koul, Research Associate

About Fullerton Credit: Fullerton Credit (FC) was established by Fullerton Financial Holdings of Singapore to provide small-business financing in China. FC was granted an operating license in 2008, and the company was officially launched in 2009. The headquarters of FC are in Chengdu, the capital of the Chinese province of Sichuan. As of 2012, FC reported total assets of SGD 238 million (USD 191 million), 24 branches and return on equity (ROE) of 1 percent.

About Fullerton Financial Holdings (FFH): Singapore-based Fullerton Financial Holdings is a financial services holding company that invests in financial institutions in emerging markets. As of 2013, it has investments in 12 financial institutions. FFH is a wholly-owned subsidiary of Tamasek Holdings, an investment firm of the Singapore government. As of 2012, FFH reported total assets of SGD 41 billion (USD 33 billion), a loan portfolio of SGD 16 billion (USD 13 billion) and total deposits of SGD 12 billion (USD 10 billion).

About International Finance Corporation: A member of the US-based 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. At fiscal year-end 2013, IFC reported 184 member countries and total assets of USD 77.5 billion.

Sources and Additional Resources:

[1] IFC Press Release, “IFC Makes New Investments to Strengthen Microfinance Lending in China,” http://ifcext.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/28667EFEB06F6A5B85257C0700177F4D

IFC Press Release, “IFC Provides Renminbi Financing to Fullerton Credit to Increase Microfinance Lending in China,” http://ifcext.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/B6638692A41B380185257A67002D1F36

MicroCapital Story, November 7, 2013, “International Finance Corporation (IFC) Makes $3m Equity Investment in Bina Usaha Keluarga (BUK) of Indonesia, Seeking to Triple Female Clients of Microfinance Institution Mitra Bisnis Keluarga Ventura (MBK),” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-makes-3m-equity-investment-in-bina-usaha-keluarga-buk-of-indonesia-seeking-to-triple-female-clients-of-microfinance-institution-mitra-bis/

MicroCapital Story, May 1, 2013, “International Finance Corporation, Bank of Shanghai Launch $80m Loan, Advisory Program Supporting Energy Upgrades for Small, Medium-sized Enterprises,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-bank-of-shanghai-launch-80m-loan-advisory-program-supporting-energy-upgrades-for-small-medium-sized-enterprises/

MicroCapital Story, July 2, 2012, “International Finance Corporation (IFC) to Loan $50m to Jiangsu Financial Leasing of China for On-lending to Small and Medium-Sized Enterprises (SMEs) in Education, Healthcare,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-loan-50m-to-jiangsu-financial-leasing-of-china-for-on-lending-to-small-and-medium-sized-enterprises-smes-in-education-healthcare/

MicroCapital Universe Profile, Fullerton Credit, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fullerton+Credit

MicroCapital Universe Profile, Fullerton Financial Holdings, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fullerton+Financial+Holdings

MicroCapital Universe Profile, International Finance Corporation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation

MicroCapital Universe Profile, Temasek Holdings, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Temasek+Holdings

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