Summary of Proposed Investment
Project Number
11220
Company Name
BANK OF XI'AN CO., LTD.
Date SPI Disclosed
Sep 26, 2002
Country
China
Industry
Financial Markets
Projected Board Date
Nov 11, 2002
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Jan 9, 2003
Signed : Jun 27, 2003
Invested : Oct 27, 2004
Project Description
XCCB was established in 1997 through a consolidation of 42 urban credit cooperatives in Xi''an. It provides a full range of commercial banking services targeted to primarily SMEs in Xi’an. It is proposed that IFC make an equity investment for up to 12.4% shareholding of XCCB. The bank of Nova Scotia (Scotiabank) of Canada, which will be the strategic and technical partner to co-invest with IFC, will also take an equity stake of 11.5%. This would be IFC’s first investment in a financial institution in the western region of China.
The project is intended to strengthen XCCB''s capital base and assist XCCB in its effort to improve corporate governance, adopt international standards and banking best practices, and become a leading bank in western China. This venture will have a very strong institution-building and development impact, since it will demonstrate IFC''s support to the economic development of western China, which is still underdeveloped relative to the coastal regions. The Chinese government is making a strategic effort to boost the region''s domestic and foreign investment, as well as private sector development. IFC has already devoted a lot of effort to identify the strategic and technical partner, and to structure the investment.
Scotiabank''s participation in the management of XCCB will help ensure the effective transfer of international banking best practices and therefore the success of this investment.
The project is intended to strengthen XCCB''s capital base and assist XCCB in its effort to improve corporate governance, adopt international standards and banking best practices, and become a leading bank in western China. This venture will have a very strong institution-building and development impact, since it will demonstrate IFC''s support to the economic development of western China, which is still underdeveloped relative to the coastal regions. The Chinese government is making a strategic effort to boost the region''s domestic and foreign investment, as well as private sector development. IFC has already devoted a lot of effort to identify the strategic and technical partner, and to structure the investment.
Scotiabank''s participation in the management of XCCB will help ensure the effective transfer of international banking best practices and therefore the success of this investment.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Jiansheng Wang, Senior Investment Officer
International Finance Corporation
Global Financial Markets Department
jwang@ifc.org
International Finance Corporation
Global Financial Markets Department
jwang@ifc.org