IFC, DEG offer debt funding to Chinese microfinance firm CD Finance

Chinese rural-focused microfinance provider CD Finance signs a debt financing agreement with DEG, a subsidiary of German state-owned development bank KfW, and the International Finance Corporation (IFC) in November 2019.

Chinese rural-focused microfinance provider CD Finance has raised debt funding of $30 million from DEG, a subsidiary of German state-owned development bank KfW.

The corpus, which was agreed upon in November, is a part of a syndicated loan facility amounting to $80 million led by the International Finance Corporation (IFC), a member of the World Bank Group that offers investment, advisory, and asset management services for private companies in less developed countries, DEG revealed on its website.

As part of the deal, IFC has also provided $30 million in debt funding to CD Finance in the initial close of the debt financing round, according to a separate statement on CD Finance’s website.

Established in 2008, CD Finance gets through to the last hectometre of rural finance by providing an average loan size of 29,943 yuan ($4,270) to over 350,000 active borrowers across a country-wide presence of 320 branches.

The company’s borrower profile attests to its focus on promoting the development of underserved groups: As much as eighty-nine per cent of its borrowers are rural clients, 69 per cent are women, 84 per cent of borrowers’ education level is at or below middle school, 51 per cent of the borrowers are first-time borrowers of formal credit, and 21 per cent are ethnic minorities.

The loan will be used to help expand CD Finance’s lending to women micro borrowers to support the growth of the cultural, tourism, and creative service industries in north-central China’s Gansu Province, the least developed province in China where 10 per cent of the population still lives in extreme poverty.

CD Finance also plans to further improve the financial capabilities of the rural population by means of financial (literacy) education.

The company, which started offering microfinance in Gansu in 2012, has served nearly 31,000 borrowers across 17 counties in the province, with about 530 million yuan ($76 million) in loan balance as of November 2019.

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.