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Foreign funds for private farming business
2003-08-08
China Daily
The International Finance Corporation (IFC), the private sector arm of the World Bank Group, signed credit agreements with two Chinese private companies yesterday.
The investments in the two companies, Jilin Huazheng Agricultural Development Co Ltd and Global Infotech Holdings Inc, total US$25.5 million.
According to the agreement, IFC will extend a US$22 million loan to Jilin Huazheng Agricultural Development to help it integrate and expand its pork production activities.
It is the first IFC investment in Northeast China's Jilin Province, and also the first overseas financing project approved by the Chinese Government since 1995 to support a private agricultural business.
The loan will be used to help the firm build new pig breeding farms, a new processing facility to produce ready-to-eat packaged meats and upgrade slaughtering capacity.
Company Chairman Han Zhenfa "welcomed the close collaboration between the IFC and other international partners.''
The IFC's country manager for China, Karen Finkelston, believes the project will serve as a role model for other international and private sector investments in Northeast China, which has failed to attract much foreign capital.
In the other deal yesterday, the IFC agreed to provide a US$3.5 million loan to Global Infotech, a Chinese information technology services and software development company.
The investment will support the IT firm's expansion of its software product line and development of a new software centre in Chengdu, capital of Southwest China's Sichuan Province.
"We expect our first investment in Chinese IT firms will have a positive impact on the sector and also on the financial sector since Global Infotech delivers innovative IT solutions to Chinese banks and other financial institutions,'' said Javed Hamid, IFC director for East Asia and the Pacific.
Yu Wei, the founder and CEO of the Chinese company, said: "IFC's fund will play a key role in assisting us in the next phase of growth and in achieving the company's goal, which aims to show China's software engineers are able to translate business needs into efficient enterprise software.''
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