| Citigroup Venture Capital International (CVCI), the emerging market investment unit of Citigroup Investments, recently signed an agreement with Chinese credit guarantee provider Credit Orienwise Group (COG) to invest US$25 million in the latter, the Beijing News reported on November 4.
After the investment is in place, CVCI will be fully involved in the operation of COG, said Wei Yong, general manager of COG, adding that the equity structure is still under discussion.
Citigroup Venture Capital International (CVCI) becomes the second major foreign entity to invest in COG after the Asian Development Bank (ADB) invested US$10 million in recent months.
CVCI is upbeat about Chinese SMEs' potential in both corporate and individual financing services, said Gordon Clancy, director of CVCI Asia Pacific region, adding that COG is a suitable company which CVCI intends to cooperate with.
COG aims to become China's largest financing service provider for SMEs. The cooperation with CVCI and ADB provides COG not only abundant funds but also advanced management expertise, said Zhang Kaiyong, chairman of COG.
Shenzhen-based Credit Orienwise Group, registered in Cayman Island, is a Chinese private-owned company that provides guarantee to loans for SMEs in China. By 2004 yearend, COG provided guarantee for loans up to 7 billion yuan. The company's net assets exceeded 1.2 billion yuan. |