China, People's Republic of : Zhujiang Financial Leasing Small and Medium-Sized Enterprises Finance Project

Nonsovereign Project | 54459-001

A proposed loan of up to $40,000,000 (or its yuan equivalent) to Zhujiang Financial Leasing Company Limited (ZFL) for the Zhujiang Financial Leasing Small and Medium-Sized Enterprises Finance Project in the People's Republic of China (PRC).The project entails the Asian Development Bank (ADB) providing longer-tenor financing to ZFL for lease finance to small and medium-sized enterprises (SMEs) in the PRC. ADB's financing will support ZFL's funding requirements for long-term funding for SMEs, which is in short supply in the PRC. This will enable the company to provide longer-tenor lease finance to underserved segments, improve its asset-liability profile, and diversify its funding sources.

Project Details

  • Project Officer
    Doukidis, Doukas
    Private Sector Operations Department
    Request for information
  • Country/Economy
    China, People's Republic of
  • Sector
    • Finance
Project Name Zhujiang Financial Leasing Small and Medium-Sized Enterprises Finance Project
Project Number 54459-001
Borrower / Company Zhujiang Financial Leasing Company Limited
Country / Economy China, People's Republic of
Location Nation-wide
Type or Modality of Assistance
4066 Loan Ordinary capital resources USD 40.00 million Committed
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
Sector / Subsector

Finance / Small and medium enterprise finance and leasing
Gender Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Doukidis, Doukas
Project Sponsor(s)
Objectives and Scope A proposed loan of up to $40,000,000 (or its yuan equivalent) to Zhujiang Financial Leasing Company Limited (ZFL) for the Zhujiang Financial Leasing Small and Medium-Sized Enterprises Finance Project in the People's Republic of China (PRC).The project entails the Asian Development Bank (ADB) providing longer-tenor financing to ZFL for lease finance to small and medium-sized enterprises (SMEs) in the PRC. ADB's financing will support ZFL's funding requirements for long-term funding for SMEs, which is in short supply in the PRC. This will enable the company to provide longer-tenor lease finance to underserved segments, improve its asset-liability profile, and diversify its funding sources.
Status of Development Objectives In process
Status of Operation/Construction On going
Linkage to Country/Regional Strategy The project is consistent with ADB's country partnership strategy, 2021-2025 for the PRC, which emphasizes facilitating access to financing for private companies, in particular SMEs. The project is aligned with the Review of ADB's Financial Sector Operational Plan, which notes that ADB will support financial inclusion of the traditionally underserved, such as SMEs. The plan also called for increased support to leasing and other finance subsectors, which supplement the commercial banks and play an important role in improving SMEs' access to finance. ADB's enhanced poverty reduction strategy also states that ADB seeks to promote sound and efficient financial markets to improve access to finance and achieve pro-poor growth. The project builds on the previous ADB support to the leasing industry in the PRC. It is aligned with the Private Sector Operations Department's strategy for COVID-19 response by supporting businesses, including SMEs negatively affected by the pandemic.
Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects ZFL's equipment and facilities leasing to Small and Medium Enterprises is not expected to have significant adverse environmental impacts. As an existing client of ADB, ZFL has established and maintains an Environmental and Social Management System (ESMS) satisfactory to ADB that includes procedures to (i) screen transactions against ADB's prohibited investment activities list, (ii) categorize investments to exclude those having significant environmental and/or social impacts (category A), and (iii) ensure that investments using ADB loan proceeds comply with applicable ADB's Safeguard Policy Statement (2009) requirements and national laws and regulations.
Involuntary Resettlement The lease portfolio of ZFL involving SMEs is expected not to have significant impacts on involuntary resettlement. However, its tourism business segment includes transactions with urban redevelopment corporations operating cultural attractions adjacent to large cities under a sale-and-leaseback financing model where the real estate property rights are the subject of the lease. In such cases, all land acquisition and resettlement activities are completed by the government and disclosed by the potential client to ZFL only upon application for financing. The current ESMS includes the procedure to review land-related documents to screen and assess potential subproject's impacts on involuntary resettlement.
Indigenous Peoples ZFL's operation is market-driven, it neither promotes nor discriminates against leasing to any ethnic minority groups. The existing ESMS also includes guidelines and procedures to screen and assess impacts of potential subprojects to Indigenous Peoples.
Stakeholder Communication, Participation, and Consultation ZFL maintains a company website to inform its client, stakeholders, and the general public of its operations. The website also provides avenues to raise any concerns and grievances related to its operations.
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting 24 Mar 2021
Approval 20 May 2021
Last PDS Update 04 Oct 2022

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Related Publications

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