The Asian Development Bank (ADB) has agreed to take a minority stake in privately owned credit guarantee provider Credit Orienwise Group, for US$10m (HK$78 m), in a move to help the growth of small- and medium-sized enterprises segment (SMEs) in China .
Credit Orienwise Group is the biggest among 2,000 to 3,000 companies that guarantee loans for SMEs in China.
The investment will be used mainly to improve the credit guarantee provider's internal information technology systems and increase its capital. ABN Amro is the adviser for the transaction.
Shenzhen-based Credit Orienwise Group, which was set up in 1999 with a registered capital of 500 million yuan (HK$470.8 m), has already established its presence in Shanghai, Xiamen and Changsha.
It obtained investment of 10 m yuan in 2000 and US$8m in 2001.
Source: The Standard
