Beijing, October 12, 2005—The International
Finance Corporation, the private sector arm of the World Bank Group, today
announced support for Nanjing City Commercial Bank’s strategic partnership
with BNP Paribas. BNP Paribas is taking a 19.2 percent shareholding in
NCCB. To accommodate the new investment, IFC has sold to BNP Paribas 10
percent of its initial 15 percent investment in NCCB. IFC will remain a
shareholder with 5.0 percent equity in NCCB.
“The new strategic partnership will help Nanjing City Commercial Bank
achieve higher standards through transfer of knowledge and technology from
BNP Paribas,” said Karin Finkelston, IFC Associate Director. “IFC’s
support for NCCB remains strong and we are pleased to be able to continue
supporting NCCB’s continued success as a shareholder.”
IFC invested in NCCB in 2001, before the sector was open to investment
by foreign banks. With the support of PBOC and CBRC, as well as the
Nanjing City Government, IFC worked closely with the other NCCB shareholders
and management to strengthen the bank’s institutional capacity. Following
significant changes and improvements in areas such as risk management,
today’s transaction puts NCCB on course to develop more rapidly through
the transfer of the technology and management skills BNP Paribas has committed
to bring as an investor. BNP Paribas and NCCB will establish close cooperation
in operational areas, including retail banking, fixed-income, consumer
finance, wealth management, risk management, and information technology.
The partnership will help further develop and enhance NCCB’s franchise
and core competitiveness as well as capture new business opportunities
in the fast evolving Chinese banking market.
Since 1985, IFC has invested more than $2 billion in 100 private sector
companies in China. IFC has invested more than $200 million in six commercial
banks as part of strategy to support the development of China’s domestic
IFC promotes sustainable private sector investment in developing and transition
countries, helping to reduce poverty and improve people’s lives. IFC finances
private sector investments, mobilizes capital in the international financial
markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
Its 178 member countries provide its share capital and collectively determine
From its founding in 1956 through FY05, IFC has committed more than $49
billion of its own funds and arranged $24 billion in syndications for 3,319
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY05 was $19.3 billion for its own account and $5.3 billion held
for participants in loan syndications.