International Finance Corporation (IFC), a member of the World Bank Group, has proposed to extend up to $75 million financing in China Education Group Company Limited (CEG), the owner and operator of three leading higher education and vocational training institutions in China.
IFC proposes to provide up to $30 million equivalent of equity and $45 million straight senior loan to support CEG’s plans to expand its employment-focused education model in China.
Founded by Guo Yu and Ketao XIE, CEG owns and operates Jiangxi University of Technology, Guangdong Baiyun University, and Guangzhou Baiyun Technician College of Business and Technology. CEG has a total student enrolment of 75,255.
The company is embarking on a $370-million expansion, which includes the construction of new campuses and the acquisition of existing higher education institutions in China.
In a filing, the IFC said, it will provide financing consisting of patient equity capital as well as long-term loan to CEG.
“Such financing package is not readily available for a private higher education company in China especially as there are limitations in pledging education assets as collateral for borrowing,” the IFC said.
If the investment proposal is approved, CEG will join IFC’s global network of education clients.
“A partnership with IFC is a valuable platform for the company to explore international collaboration opportunities as well as learn from best practices in higher education and vocational training companies of other countries that are de-regulating their education sector,” the IFC added.
On its website, CEG said, it offers 80 bachelor’s degree programmes, 32 junior college diploma programmes, and 108 vocational education programmes. The disciplines provided by the group cover 97.7 per cent undergraduate students and 91.9 per cent junior college students in China, respectively.
“The group emphasises the teaching of practical skills and knowledge and focus on workplace simulation training to improve the employability of its graduates,” CEG said.