The Chinese microfinance institution CD Finance recently secured a loan of USD 40 million from the Asian Development Bank (ADB) to finance microloans intended to improve the quality of life of farmers, microentrepreneurs and women in rural areas of the People’s Republic of China (PRC). Sixty percent of the total is allocated to female borrowers, an amount expected to reach approximately 30,000 women. The agreement also includes a “gender action plan” for providing financial education and additional, unspecified support to women customers.
Ashok Lavasa, Vice President of ADB’s Private Sector Operations and Public-private Partnerships, said, “accelerating access to rural finance, particularly for women, and bridging gaps in financial services are key to achieving sustainable rural development.”
Established in 2008, CD Finance serves 420,000 customers with products such as “microcredit, microinsurance, agricultural input e-commerce, direct procurement of agricultural outputs, and technical training.” Of its borrowers, 72 percent are women, mainly those who live in rural areas and are classified as low- or middle-income. CD Finance operates 397 branches across 20 provinces. As of 2019, its average outstanding loan size was CNY 28,600 (USD 4,400).
Established in 1966, ADB is an international development finance institution headquartered in Manila, the Philippines. The institution’s mission is to help its 68 member countries reduce poverty and otherwise improve the quality of life of Asia’s citizens. As of 2020, ADB had total assets of USD 272 billion and a loan portfolio of USD 130 billion.
By Sophie Fiala, Research Associate
Sources and Additional Resources
ADB press release
https://www.adb.org/news/adb-cd-finance-sign-loan-support-rural-microcredit-farmers-entrepreneurs-and-women-borrowers
CD Finance homepage
https://www.cdfinance.com.cn/
ADB annual report
https://www.adb.org/documents/adb-annual-report-2020
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