37133 - BOW BOL

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Summary of Investment Information

Project Number

37133

Company Name

Bank of Luoyang Co., Ltd.

Date SPI Disclosed

Jul 29, 2015

Country

China

Region

East Asia and the Pacific

Projected Board Date

Aug 31, 2015

Environmental Category

FI-2 - Limited

Status

Pending Disbursement

Last Updated Date

Nov 30, 2016

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Nov 30, 2015
Signed : Nov 26, 2015

Sector

Commercial Banking - SME Finance

Additional Project Attributes

Blended Finance

Project Description

IFC is in discussion with Bank of Luoyang (BOL) to enter into a risk sharing facility (RSF) to support women-owned small and medium-sized enterprises or women entrepreneurs in Henan province (the Project). IFC would take credit risk in a loan portfolio to be originated and funded by BOL.

Associated Advisory Engagement

As part of the regional EAP WIN (597067) advisory services project, IFC will provide advice to Bank of Luoyang on how to increase access to financial and non-financial services for women SMEs in Henan province, China, and address gender specific opportunities for financial inclusion. IFC will work with the managers of BOL to develop new financial products and services for women-owned SMEs and to make the necessary modifications to the policies, procedures, MIS, organizational structure and operations to accommodate the new strategy and value proposition.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	77.20
Loan
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Guarantee	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

1) Introduce women-owned SME lending as an asset class and enable the Bank to explore an untapped market segment.
2) IFC global experience and knowledge in BOW will add value to the project in transaction structuring, customer selection, and risk management.
3) Stamp of approval - By working with IFC on an innovative product, it provides IFC''s stamp of approval to the Bank''s capacity to implement innovative products in the market.

E&S Category Rationale / Risks and Mitigation

The proposed Project is an RSF to support small and medium businesses run by women. The nature of supported business activities involves limited adverse E&S risks and potential impacts that are few in number, generally site-specific, largely reversible and can be readily addressed through mitigation measures. Therefore, in accordance with IFC’s Environmental and Social Review Procedure, this Project has been categorized as FI-2. The key E&S performance requirements for the Project will include screening against and compliance with IFC Exclusion List and relevant Chinese national and local E&S laws and regulations.

The key E&S risks and impacts of the Project derive from the E&S risks and impacts of the RSF supported activities, and BOL’s capacity and quality of the E&S risk management system in place to manage these risks. At present BOL has adopted China Green Credit Guideline to control lending exposure to certain industrial sectors. Under the Project, BOL will be required to further upgrade and implement its Environmental and Social Management System (ESMS) in line with IFC’s standard. BOL was found to be generally in line with IFC Performance Standard 2 Labor and Working Conditions for its own labor and working practices.

Contacts

For Inquiries About the Project, Contact

Bank of Luoyang Co., Ltd.
256 Kaiyuan Ave., Luolong District
Luoyang, China
Telephone: 0379-65921991
Fax: 0379-65920155

Website: http://www.bankofluoyang.com.cn/

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

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Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

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Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
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Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
Nominate officers	10/31/2015
Staff Training	10/31/2015
Upgrade ESMS	10/31/2015

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