The partners in the JVC will be one of the four asset management companies in China and an entity managed by GE Commercial Finance, one of the leading players in distressed assets business in Asia.

The proposed registered capital of the JVC will be around $300 – 400 million. IFC is to make an equity investment for 14% equity stake in the JVC.

55.26 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	0.0
Loan	0.0
Equity	55.26

* These investment figures are indicative

The location of the headquarters of the JVC will be a city in China to be determined by mutual agreement between the joint venture partners. The JVC’s investments would be located in various regions of China.

This project will help address the non-performing-loan (NPL) problem which is one of the most pressing challenges facing China. Specifically, the project will have the following development impacts:

- Resolve existing and future distressed assets in an efficient way
- Improve banks’ balance sheet and capital adequacy
- Establish a sustainable and commercially oriented asset management company
- Promote enterprise restructuring

IFC’s expected development contributions to the project are:

- Leverage IFC’s unique experience in workout and restructuring in emerging markets to support JVC’s business development and capacity building;
- Contribute in establishing a high-standard corporate governance structure based on international best practices;
- Facilitate relationship between the local and the foreign partners.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Considering the project''s involvement in the acquisition and restructuring of distressed assets, the project will be required to:

- Develop a Social & Environmental management system/procedure relevant to its business process, prior to disbursement, that is satisfactory to IFC, that ensures that all its investments are screened and processed to avoid supporting activities on the IFC FI Exclusion List,

- Review information available in the public domain and avoid investments in sub-projects that have substantial unresolved social or environmental issues,

- Commit to work with the assets it is restructuring to ensure that the projects are operating in compliance with Applicable National Environmental and Social Laws and regulations, or have an action plan to achieve the same within a reasonable time frame,

- Demonstrate commitment and resources to implementing the Social & Environmental management system/procedure, and take action to remedy any gaps in implementation on an ongoing basis,

- Submit a periodic report to IFC as per a format to be provided by IFC.