Summary of Proposed Investment
Project Number
8312
Company Name
New China Life Insurance Company Ltd.
Date SPI Disclosed
Jan 12, 1998
Country
China
Industry
Financial Markets
Status
Completed
Sector
Life Insurance
Department
Global Industry, Financial Markets
Environmental Category
C - No Impact
Previous Events
Approved : Nov 16, 2000
Signed : Dec 18, 2000
Invested : Dec 27, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | China-New China Life |
| Region | Asia |
| Sector |
Projected Board DateFebruary 12, 1997
Company NameNew China Life Insurance Co., Ltd.
Technical Partner and/or Major Shareholders
The Company currently is owned by 15 SOEs and private-sector shareholders, with seven owning 10% each, and the remaining 30% by 8 smaller shareholders. All the shareholders are Chinese industrial and trading groups. As part of its new ownership arrangements, the aggregate public sector shareholding in the Company would be reduced to less than 50%, with a corresponding increase in the local private and foreign shareholding. The Board of the Company has formed a share transfer committee to facilitate the potential investment by IFC and the foreign technical partners in the Company.
Project Cost Including Proposed IFC Investment
A capital increase of up to US$120 million in the Company, including IFC’s equity contribution of up to US$12.5 million equivalent.
Location of Project and Description of Site
Beijing [Capital City of China]
Description of Company and Purpose of Project
(include IFC’s Role and Development Impact)
| The project will help create the first domestic private sector-led life insurance company in China, with the equity participation and technical affiliation of leading international insurance groups. |
NCLI is a life insurance company recently licensed by the authorities in China, with a mandate to operate nationwide. In addition to supporting private sector entry into the insurance sector in China, IFC expects to collaborate with some of the leading international insurance groups to help open up this sector to overseas investment, which would result in ending the monopoly enjoyed thus far in the domestic market by entities owned directly by the state.
Environmental Category and Issues
This is an environmental review category C project. No further environmental review will be required.
| Date SPI sent to InfoShop | January 12, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Sponsor / Cost / Location
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