Fullerton Financial Holdings (International) Pte. Ltd. (“FFH” or “the Sponsor”) – The three Companies, FCSC, FCCQ, FCHB are all fully owned by AF Management Service Pte. Ltd. (“AFM”). AFM is incorporated in Singapore and further 100% owned by Fullerton Financial Holdings (International) Pte. Ltd. (“FFH” or “the Sponsor”), a fully-owned subsidiary of the Government of Singapore’s Temasek Holdings (“Temasek”) that invests in various financial sector entities in Asia.

The total project cost is estimated at US$50million equivalent. The proposed project will consist of a long-term loan facility denominated in RMB.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

FCSSC, FCSCQ and FCSHB, together with a total of 22 branches across three provinces, are each headquartered in Chengdu, Chongqing and Wuhan respectively.

Expanding Access to Finance for MSEs : Micro and Small Enterprises ("MSEs") play an important role in creating employment and contributing to local economy particularly in less developed regions. Nevertheless, MSEs are under-served by traditional financial institutions. The expansion of the Companies will help address this issue by increasing credit supply accessible and affordable by MSEs; Supporting Economic Growth in Frontier Regions: Frontier regions in China have experienced much pronounced difficulties in access to finance for MSEs, which hinders the economic growth in these regions. The Companies, operating in three large frontier provinces, i.e., Sichuan, Chongqinq and Hubei, will expand access to credit in these regions, specifically to MSEs, thereby supporting the continued growth of the local economy; Demonstration Effect of Setting Best Practice in the Burgeoning Chinese Microfinance Sector: The Companies have potential to become model institutions in China in serving the MSEs with a novel business model. The success of the Companies is likely to attract other MCCs to emulate, with a demonstration effect to stimulate the healthy development for the entire sector.

Long Term Local Currency Funding: IFC can provide long-term local currency funding to the Companies, which is not easily accessible locally, in particular to the MCCs in China given the regulatory constraints and the lack of interest by local banks in supporting the MCCs; IFC Global Knowledge: IFC, with its global expertise and experience in microfinance and SME finance as well as its connections with successful operators globally, can help the Companies improve their operations through introducing global best practices.

This project has been classified as Category FI according to IFC’s Environmental and Social Review Procedure. All of these micro credit companies supported by IFC financing will be required to implement an environmental and social management system (ESMS), satisfactory to IFC and prior to IFC disbursement, to ensure their lending activities will be consistent with IFC FI Exclusion List and the applicable Chinese E&S laws and regulations. These companies will also be required to comply with IFC’s Performance Standards 2: Labor and Working Conditions for their own labor practices. In addition, these companies will need to appoint a senior officer to oversee the ESMS implementation and to submit an annual environmental and social performance report to IFC according to an IFC-approved reporting format.