IFC proposes to invest $44m in China’s JD Finance agri-lending arm

Agricultural paddy

The International Finance Corporation (IFC) has proposed to invest up to $44 million in JD Chongqing Microcredit Company (JD CQ MCC), a dedicated lending company for the agri-loans controlled by China’s JD Finance, it said in a disclosure dated August 15.

“The investment entails a 3-year, up to RMB 300 million (USD 44 million) LCY senior loan to JD CQ MCC…The investment will be secured by the guarantee from its ultimate parent and controller – Beijing JD Financial Technology Holding Co., Ltd. (“JD Finance”),” the IFC disclosure said.

Chongqing City-based JD CQ MCC was established in January 2016 and is wholly owned by JD Finance. As of May 31, 2017, its registered capital was $88 million, its total asset was $170 million, and outstanding loans of $166 million.

Established in 2013, JD Finance has several business sectors including supply-chain finance, agri-finance, consumer finance, payment, crowd-funding, wealth management, among others.

JD.com Inc, China’s second-largest e-commerce firm, in a statement on August 14 announced the spin-off of subsidiary JD Finance giving it greater regulatory freedom. It is now a fully Chinese-owned entity.

The proposed investment will expand financial access to the most underserved agricultural MSMEs, IFC said adding that it will also promote big data based agri-lending: through introducing the advanced internet and mobile based financial services to agricultural MSMEs, and accumulating the necessary data for framers and MSMEs along the supply chain.

It will further serve as a pilot program and catalyst to encourage other FIs and ecommerce companies to explore the feasible service model for China rural market, it added.

JD.com, China’s main rival to Alibaba Group Holding Ltd, reported net loss attributable to shareholders of 496.4 million yuan ($74.43 million) in the second quarter, from 252.3 million yuan in the same period a year earlier.

Also Read:

China: JD.com spins off finance, logistics unit in rejig, Q2 loss widens

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.