MICROCAPITAL BRIEF: Asian Development Bank (ADB) Loans $60m to Zhujiang Financial Leasing for Small, Medium-sized Enterprises (SMEs) in Central, Western China

The Asian Development Bank (ADB), a multilateral institution based in the Philippines, recently loaned USD 60 million to Zhujiang Financial Leasing Company Limited (ZFL) for on-lending to small and medium-sized enterprises (SMEs) in central and western China. Founded in 2014, ZFL is a subsidiary of China’s Guangzhou Rural Commercial Bank. ZFL’s goals are “serving the real economy, striving for specialization, and supporting inclusive finance and green finance.” The firm is active in industries such as agriculture, healthcare, environmental, tourism and education. Hong Kong-based AMTD Group, which advised ZFL on the loan, reports that ZFL has a net worth of RMB 24 billion (USD 3.5 billion) including lease financing assets of RMB 12 billion (USD 1.7 billion).

Guangzhou Rural Commercial Bank is a private financial institution founded in 2009 that offers corporate banking, retail banking and financial-market services. As of 2017, the bank reported total assets of RMB 736 billion (USD 109 billion), total liabilities of RMB 687 billion (USD 102 billion), return on total assets of 0.84 percent, and return on equity of 14 percent.

Established in 1966, the ADB’s goal is to eradicate poverty in the Asia-Pacific region. It is owned by 67 countries, of which 48 are located in the region. For 2017, the ADB had a total budget of USD 32.2 billion, including USD 11.9 billion in co-financing.

By Umit Naz Deryaoglu, Research Associate

Sources and Additional Resources
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ADB press release
https://www.adb.org/news/adb-zfl-sign-deal-enhance-access-finance-smes-central-and-western-prc

ZFL background & financials
https://www.amtdgroup.com/en/zjfl

Guangzhou Rural Commercial Bank homepage
http://eng.grcbank.com

Guangzhou Rural Commercial Bank 2017 financial report
http://eng.grcbank.com/AboutGRCB/InvestorRelations/InfornmationDisclosure/FinancialReports/a/e24609_636594947993085864.pdf

ADB homepage
https://www.adb.org

MICROCAPITAL BRIEF: ADB Lending $20m in Local Currency to MicroCred to Support MSMEs in Western China
https://www.microcapital.org/microcapital-brief-adb-lending-20m-in-local-currency-to-microcred-to-support-msmes-in-western-china/

MICROCAPITAL BRIEF: Hatton National Bank (HNB) Secures Partial Guarantee from Asian Development Bank (ADB) for $20m in Lending to Microfinance Institutions (MFIs) in Sri Lanka
https://www.microcapital.org/microcapital-brief-hatton-national-bank-hnb-secures-partial-guarantee-from-asian-development-bank-adb-for-20m-in-lending-to-microfinance-institutions-mfis-in-sri-lanka/

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