IFC proposes extending up to $120m debt to Xiaomi’s microfinance business

IFC/World Bank HQ. Photo: IFC

The International Finance Corporation (IFC) a member of the World Bank Group, has proposed to offer an RMB-denominated senior loan of up to RMB 800 million ($120 million) to Chongqing Xiaomi Microfinance Co Ltd (Xiaomi MCC), a wholly-owned entity of Chinese mobile technology company Xiaomi Corporation.

The three-year loan offering will come from IFC’s own account and will be used by Xiaomi MCC to expand its lending business.

The microfinance company claims to use a Big Data-based credit assessment methodology to provide consumer loans and instalment loans across China and is looking to expand its product offerings to micro, small, and medium enterprises.

“The proposed investment is expected to support big-data based microlending to efficiently tap underserved MSMEs in lower tier segments,” IFC said in its disclosure.

The loan will be the first long-term financing for the company which will help it access diversified funding sources and to better manage maturity mismatch, it added.

The investment will also be used by Xiaomi MCC for cross-border expansion as it seeks to extend its services offerings to the countries where parent company Xiaomi already has a footprint.

Established in 2015, Xiaomi MCC is an entity of Xiaomi Finance Inc and Xiaomi Finance HK Limited, under Xiaomi Corporation, founded by Lei Jun in 2010. The corporation, which develops smartphones and smart devices as well as other Internet services, raised $4.72 billion in an initial public offering on the Hong Kong Stock Exchange this June in one of the most high-profile IPOs this year.

Also Read:

IFC proposes to inject up to $194m debt in Baidu’s student micro-loan unit

IFC may invest $20m in China’s Qiongzhong Rural Credit Cooperative

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.

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.