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

Photo: Reuters

The International Finance Corporation (IFC), the private lending arm of the World Bank Group, is considering a senior loan investment of up to RMB1300 million ($194 million) through its own account as well as a syndication facility in Baidu Chongqing Baidu Micro-Loan Company Ltd (Baidu CQ MCC), a wholly owned entity of Baidu Inc.

Baidu CQ MCC is mainly involved in financing tuition fees for students enrolled in vocational training and educational institutions and looking to expanding its reach to business with more diversified product offerings using big-data.

IFC hopes to provide a three-year RMB denominated loan of up to RMB650 million ($97 million) from their own account and the same amount through a syndication, according to IFC’s pre-investment disclosure on December 8.

“The IFC Loan will be used for on-lending to women borrowers for vocational training/education purpose across China,” stated the announcement.

The Chinese Internet search provider’s ownership in Baidu CQ MCC is made through Baidu Holdings Ltd Baidu (Hong Kong) Ltd and Baidu.com Times Technology (Beijing) Co Ltd. Baidu Inc was founded by Robin Li in January 2000 and five years later, the company was listed in NASDAQ.

The proposed investment is also expected to promote the usage of big data based lending methodology, which can help improve the efficiency and coverage of financing. For a longer-term partnership, IFC hopes to support the company with multiple investment and financing products.

In China, vocational schooling lasts two to three years, seeing enrollments from high schools and secondary vocational schools. Every year, over 11 million students are seen enrolled into technical and vocational institutions.

Looking into the support provided by World Bank in China’s vocational schools, three technical schools, Guangdong Advanced Technical School of City Construction, Guangdong Advanced Technical School of Light Industry, Yangjiang Advanced Technical School in Guangdong province have got support from the World Bank for the improvement in quality and the needs of the students.

Also Read:

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

IFC mulls up to $75m loan package for China’s housing financing firm CHG

Lexinfintech delays US IPO pricing as China reins in micro-lending

 

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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.