The key sponsor of the project is Mr. Alan (Xu Dong) Zhang, the founder, Chairman and CEO of the AnJia Group. Mr. Zhang, a dynamic and enterprising former investment banker, is the majority shareholder of the the group. Other shareholders of AnJia include management, Technology Development Fund of Singapore (TDF), and Shanghai Venture Capital Corporation (SVCC). Mr. Zhang has extensive experience in business development, investment banking and finance. Prior to founding the AnJia Group, Mr. Zhang was the Managing Director of International Capital Services and subsequently the Managing Director for Greater China and CFO of the Asia-Pacific Region for Koch Industries, Inc. Before that, he was Vice President of Corporate Finance with the First National Bank of Boston. He also worked as Senior Investment Analyst in the Private Placement Department of New England Mutual Life Insurance Company of Boston. Mr. Zhang has a master’s degree in economic development and is well respected in the Shanghai business circles and is backed by a strong management team.

The project cost of $10 million will be funded by the proposed equity investment of up to $10 million by IFC for its own account. AnJia may seek additional investment over the medium term to further expand its operations as necessary.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	10.0

* These investment figures are indicative

IFC’s investment will be made at the offshore holding company level. The operating companies funded by the proceeds of the investment will be based in the People’s Republic of China. AnJia’s operating companies are headquartered in Shanghai.

This is a Category C project, according to IFC''s Procedure for Environmental and Social Review of Projects, because it is likely to have minimal or no adverse environmental impacts.


Location of environmental documents in locally affected community

Development Impact The proposed project will promote efficiency in the housing finance market by backing the development of an intermediary specializing in mortgage origination and servicing. Focus and specialization on origination and servicing will shorten mortgage processing times, reduce costs, and hence improve efficiency. The venture will also facilitate faster growth in the home resale market and help promote private home ownership, thereby encouraging transfer of housing assets to the private sector. These assets can be used as collateral in the future, therefore the project will help in broadening access to private sector led financial services. The investment is also expected to have a demonstration effect on other similar players improving mortgage asset quality and introducing discipline in the housing finance market as a whole. Also, by standardizing the origination and mortgage servicing processes, the project will facilitate new entry by banks to the housing finance market, enable existing banks to expand mortgage lending, and also set the stage for secondary mortgage market development. Finally, the creation of an efficient large scale mortgage origination and servicing industry will facilitate the eventual entry of non-banking financial institutions in the housing market. IFC Role IFC backing will substantially enhance AnJia's financial standing, its credibility in the financial sector and among customers and regulators. IFC backing will also assist the company in attracting the high calibre professionals it needs to drive its expected rapid growth and development. IFC's support is especially important during the company's early stages of development, where it will need assistance in building the necessary institutional and corporate governance structures to establish a solid foundation for future growth and business sustainability. Over the longer term, IFC’s participation in AnJia’s growth and development positions IFC to assist, by way of technical assistance, in the development of uniform standards in mortgage origination and servicing, setting the stage for secondary market development.