Orient Finance Company Loan Facility

completed

Summary Of Project Information (SPI)Project NameChina - OFC Loan Facility    RegionAsiaSectorProject No007337Projected Board DateJanuary 6, 1997Company NameOrient Finance CompanyTechnical Partner and/or Major Shareholders OFC is fully owned by Orient Industrial Investment Co., Ltd (OIICL), which is a holding company of the Orient Group (the Group). The Orient Group was founded in 1978 by private individuals based in Heilongjiang Province. It has since diversified its business into several sectors.Project Cost Including proposed IFC investment Up to US$30 million including an IFC A loan of $10 million and a B loan of $20 million.Location of project and Description of site Harbin City, Heilongjiang Province, ChinaDescription of Company and Purpose of Project The project consists of an IFC-led facility to OFC, which is one of the first non-state sector finance houses to be established in China. IFC’s involvement will support and strengthen this non-state sector financial institution, enabling it to expand its activities on the base of the technical inputs and long-term funding to be provided/arrranged by the Corporation. This project also supports China’s on-going reform process and would enable IFC to make a meaningful contribution to the development of financial markets in China. The IFC funding would encourage the development of non-state financial intermediaries such as OFC into competitive, market-based institutions, offering a more comprehensive alternative to public sector institutions in the provision of term financing in the local market. Such new non-state sector financial intermediaries are expected to focus on small and medium-scale enterprises and to provide a greater range of financial services to local non-state businessesEnvironmental Category and Issues This is a Financial Intermediary category (FI) project according to IFC’s environmental review procedure. For relevant operations, the financial intermediary will be required to implement an environmental review system consistent with the Chinese government’s requirements and the World Bank’s policies. In addition, IFC will assess the intermediaries’ capabilities to implement the system.      Date SPI sent to PIC December 6, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365