Maple Leaf was founded by its Chairman and CEO Mr. Sherman Jen in 1994. Mr. Jen owns 71.8% of the Company’s shares. Sequoia China Capital, a private equity firm, has a 22.9% stake in the Company.

Total Project Cost is expected to be US$100 million equivalent. IFC is considering an investment as a cornerstone investor of up to US$15 million equivalent.

15.48 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.48

* These investment figures are indicative

Proceeds of the planned IPO will be used to open 17 new schools in Tier II, Tier III and Tier IV cities in China, namely Pingdingshan, Yiwu, Pinghu and Xian, creating additional capacity for over 12,600 new students. All new schools will be greenfield projects.

(i) improving access of bilingual education in Tier II, Tier III and Tier IV cities in China, (ii) demonstration effect regarding the viability of moderately priced bilingual international education and (iii) contribution to employability of Chinese students in the long term.

Catalytic role: IFC''s participation as a cornerstone investor is expected to provide reassurance to existing and potential new stakeholders by bringing credibility and visibility to the Company.
Long term financing: IFC''s equity investment will strengthen the Company''s balance sheet. The financing will allow Maple Leaf to repay a portion of its existing short term debt, putting the Company in a much stronger position to make additional long-term investments.
Improvements in Environment & Social (E&S): IFC will provide guidance to improve E&S practices in line with international best practices.
Global industry expertise: IFC will enhance the Company''s education services by sharing best practices in different areas of its operations. IFC will also share its experience in other emerging markets and Maple Leaf will join IFC''s global network of education clients.

This is a category B project according to IFC’s Procedure for E&S Review of Projects because a limited number of specific E&S impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards and guidelines.

Key E&S issues and risks associated with this category B Project are: Company''s social, environmental, occupational health and safety management system and performance at corporate level; design plans for the new schools and the use of applicable internationally recognized life and fire safety code for such; emergency preparedness and response planning; efficiency of water and energy use in company''s operations; pollution control; labor and working conditions; management of contractors and suppliers (during construction and operational phases) and land acquisition for the future school campus development.

Maple Leaf’s operations (i.e. residential school campuses) are all located in newly developed urban areas – usually the new economic zones on the outskirts of cities. Therefore, impacts related to PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources, PS7: Indigenous Peoples and PS8: Cultural Heritage are not expected for this investment.

The company has presented the information about how the E&S issues and impacts are being addressed, to ensure that the Project complies with the applicable E&S requirements including: the host country laws and regulations; IFC’s Performance Standards; and the relevant World Bank Group (WBG) EHS General Guidelines This information is summarized in the paragraphs that follow.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.