Investor Presentaiton
Case Studies - Financial Sector
PRC: Financing Micro, Small, and Medium-Sized Enterprises in
the Western Region
VIE: Mainstreaming Small and Medium-Sized Enterprises
Lending Project
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DÙNG SỬ
Client: Microcred Nanchong Company Limited
ADB Commitment: $19.7m loan
Key Features:
MicroCred Nanchong is fully owned by MicroCred China Limited (MCL), and is
registered in Sichuan, one of PRC's poorest provinces. It had built a long and
successful record in providing unsecured microloans to MSMEs in Sichuan
province. MCL has strong shareholders (majority owned by Baobab, with other
shareholders including IFC, KfW and Developing World Markets), sound
corporate governance, experienced management team, developed risk
management systems, and satisfactory financial performance.
ADB's loan supports lending operations to micro, small, and medium-sized
enterprises in the underdeveloped western region of PRC. By providing access
to finance, the project will support the expansion of small businesses and
generation of additional employment opportunities, which will in turn
contribute to poverty reduction.
ADB's Value Addition:
.
Provide access to longer-tenor finance to help fill MCL's funding gap to support its
expansion. MicroCred Nanchong does not have access to deposits and faces
difficulties in obtaining finance from commercial banks.
Support effective gender mainstreaming through the gender action plan by
targeting more than 10,000 female borrowers.
Approval Date: 6 August 2018
Commitment Date: 5 November 2018
Client: Joint Stock Commercial Bank for Investment and Development of Vietnam
(BIDV)
ADB Commitment: $200m direct loan and $100m B loan
Key Features:
•
ADB will provide longer-tenor funding to BIDV to support the growth of its
lending to SMEs and provide critically needed financial products to this
underserved segment.
BIDV is the largest lender to SMEs in Viet Nam, having it as a priority in line
with the government's efforts to boost lending to this segment. BIDV is 95.3%
state-owned through the State Bank of Vietnam; 4.7% is publicly listed.
ADB's Value Addition:
•
Provide access to longer-tenor debt not readily available in Viet Nam and
support the growth of SMEs.
Part of ADB financing will be earmarked for SMEs in rural areas as well as SMEs
owned by women.
Mobilize private sector financing for BIDV to help close its funding gap. ADB
may also transfer some of its risk to private sector insurers.
ADB will also provide technical assistance to strengthen BIDV's risk
management and environmental and social management systems; (ii) support
investments in BIDV's digital strategy; and (iii) develop systems to track female
borrowers and create a strategy and products to support this important market
segment.
Approval Date: 29 August 2018
Commitment Date: 23 November 2018
7 October 2019
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