China: Proparco signs two new projects to support women microentrepreneurs in rural areas and finance electric trucks

• USD 20m signed with an innovative MFI exclusively dedicated to women

CD Finance is the largest Chinese microfinance institution (MFI) in rural areas, with more than 350.000 clients and 300 agencies. It mainly operates in the country’s poorest provinces. While maintaining its rural footprint and mission to fight poverty, for the past few years, CD Finance has been actively involved in the digital transformation by offering digital credit that facilitates access to financing for rural people living in remote areas.

100 % of PROPARCO’s credit line will be used to develop the loans allocated to women microentrepreneurs in the Gansu region, which is the second poorest province in China in terms of per capita income. The project will allow to grant 4 000 additional microcredits.

This operation is part of the 2X Challenge initiative, which aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services and increase their participation in the economy.

• USD 10m for Lionbridge to deploy a fleet of electric vehicles

To improve air quality in China, it is essential to reduce the emission of particulate pollutants from exhaust gas. However, only 4.5% of trucks in China are currently electric.

Lionbridge Financial Leasing is the largest truck leasing company in China. It has over 100,000 SME and autoentrepreneur clients, mainly in rural areas. Lionbridge now wants to develop its range of leased electric trucks under its green leasing program.

To this end, PROPARCO’s credit line will allow Lionbridge to finance the acquisition of over 300 electric trucks.

This project is PROPARCO’s second operation in the vehicle financing sector in China, following a USD 25m operation signed in 2015, with a subparticipation by the Asian Development Bank, for the financing of clean buses by the Far East Horizon leasing company.