JFLC’s equity capital is currently 45.7% held by Jiangsu Transportation Holding Co. (JTHC), 34% held by Jiangsu Yangze Bridge Stockholding Co. (JYBS), 20% held by Jiangsu Guang-jing-xi-cheng Highway Co. (JGHC), and 0.3% held by Suzhou Material Holding Group. Both JYBS and JGHC are controlled by JTHC, a major SOE in Jiangsu Province.

It is proposed that IFC make an equity investment for about 10% of the company’s total enlarged share capital.

21.97 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	21.97

* These investment figures are indicative

JFLC is located in Nanjing, the capital city of Jiangsu Province. It currently does not have other branches. However, the company provides leasing services to its customers throughout the country.

The project is expected to have a strong development impact in promoting the development of leasing sector in China. With IFC’s assistance, JFLC is expected to improve corporate governance, management efficiencies, and risk management framework through the introduction of international best practices, becoming a model institution for other leasing companies to emulate.

In addition to providing capital, IFC will introduce international best practice and global leasing expertise to the company through board participation. IFC will also provide advisory services to JFLC to help improve its institutional capability.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. The project will be required to develop a procedure relevant to its business process, prior to disbursement, that is satisfactory to IFC, and that ensures that all its investments are screened and processed to avoid supporting activities on the FI exclusion list, and ensures that the use of the leased equipments complies with the applicable National laws; identify qualified persons to manage and implement the procedure; demonstrate commitment and resources to implementing the procedure; when leasing to business activities with potentially significant environmental and social risks (e.g., mining, oil production), inquire and review S&E information available in the public domain and avoid leasing to businesses that have substantial unresolved environmental and social issues. In such cases, the company will also need to satisfy itself that the activity is being undertaken in compliance with the applicable national laws; and submit a periodic report to IFC as per a format to be provided by IFC.