Standard Chartered and CFPA Sign Loan and Co-operation Agreements

- It is the first loan facility by a foreign bank to a domestic institution dedicated to Microfinance projects in China

(18 Jan 2008, Beijing) Standard Chartered Bank (China) Limited (Standard Chartered Bank) today signed Loan and Co-operation Agreements with China Foundation for Poverty Alleviation (CFPA) in the Great Hall of the People, witnessed by Premier Wen Jiabao of the People’s Republic of China and British Prime Minister Gordon Brown. This is the first time that a foreign bank is providing a loan facility to an organization dedicated to Microfinance projects in China.

According to the agreement, Standard Chartered Bank will provide the initial amount of RMB20 million as a loan facility, without guarantee, to CFPA. CFPA , will then use the loan facility to finance Microfinance projects aimed at providing financial support to farmers and owners of micro-enterprises located in ten counties across seven provinces in China. The majority of these counties are nationally designated as “poor counties” by the Government.

Standard Chartered Bank and CFPA will also establish a strategic partnership to cooperate in the sharing of best practices and technical issues that will be of mutual benefit to both parties. Standard Chartered Bank will bring to CFPA its global expertise in wholesale rural finance, while CFPA will share its domestic retail Microfinance execution experience to assist Standard Chartered Bank in launching rural finance related business in China.

Katherine Tsang, CEO and Executive Director of Standard Chartered Bank (China) Limited, said,
 “We are extremely delighted to work with CFPA.  They have a lot of experience in practicing Microfinance in China, while Standard Chartered has substantial experience and expertise in microfinance on an international scale. We believe our joint efforts will help to increase the productivity, income, and living standards of poor farmers; while supporting the Chinese government in its efforts to alleviate poverty in rural areas.”

Duan Yingbi, Chairman of China Foundation for Poverty Alleviation, said, “

Our cooperation with Standard Chartered, on one hand, relieves CFPA’s loan fund shortage, expands our project scale, and helps more of the poor to increase their income. On the other hand, CFPA can learn from Standard Chartered about their international financial management knowledge, experience as well as practice. In this way, CFPA can improve our microfinance management proficiency and efficiency, thus promoting a more sustainable development of our microfinance program and helping more of the poor.

“This can be considered as the second microfinance project Standard Chartered Bank has involved in China, following the one we have jointly launched with Esquel in Xinjiang last December.”  Peter Sands, Group Chief Executive of Standard Chartered PLC, remarked, “As a responsible corporate citizen, Standard Chartered Bank supports the Chinese government’s policy of expediting the reform of rural financial system, and is committed to actively involve in Microfinance projects. Standard Chartered Bank has accumulated substantial experience through providing Microfinance across 13 countries in Asia and Africa. By bringing our worldwide experience into China, we endeavour to contribute to the financial services industry in China’s rural areas. ”

– ends –

For further information, please contact:

Li Qi
Project Manager of Microfinance Department
China Foundation for Poverty Alleviation
Tel: (010) 82872688 ext 865
Email: liqi@fupin.org.cn

Eva Chow
Head of Corporate Communications
Standard Chartered Bank (China) Limited
Tel: (021) 3896 3198
E-mail: Eva.Chow@standardchartered.com

Note to editors:
China Foundation for Poverty Alleviation (CFPA) was established in March 1989. CFPA is a non-profit NGO that accepts Chinese and international donations.

CFPA is currently implementing several poverty reduction initiatives including microfinance, maternal and infant healthcare, financial support for impoverished college students, disaster relief and community development. As one of the largest NGOs in the field of poverty reduction, CFPA aims to:

· Help resource-deficient poor communities enhance their capacity for self- sustainability
· Upgrade basic production conditions and primary social service levels
· Mitigate social suffering while promoting social harmony

Since CFPA’s establishment approximately 18 years ago, it has raised over RMB2.3 billion that has been invested in over 200 poverty alleviation programs, helping over 3.5 million poor people to lift themselves out of poverty. In recent years, each year CFPA helps approximately 300,000 to 500,000 poor people.

Under the supervision of the State Council’s Poverty Alleviation Office, CFPA started its microfinance poverty alleviation program in 1996. For almost 10 years, CFPA has disbursed in total approximately RMB300 million in loans to 130,000 rural households, directly benefiting over 500,000 poor individuals. In 2007, CFPA disbursed 38,050 loans totaling approximately RMB118 million, marking the first time that the disbursements exceeded RMB100 million. As of the end of December 2007, CFPA’s microfinance program covered 13 counties spread across 7 provinces. The majority of these counties are designated by the Chinese government as poverty-stricken counties. At present, CFPA’s microfinance poverty alleviation program is growing to be the largest microfinance program implemented by an NGO.

CFPA’s microfinance targets the poor who have no access to formal financial institutions but have the capacity to produce and manage businesses. At the same time, CFPA not onlystarts off by trying to improve the poor’s self-reliability through microfinance, distinguishing CFPA from other Chinese microfinance institutions.

Standard Chartered – leading the way in Asia, Africa and the Middle East

Standard Chartered PLC is listed on both the London Stock Exchange and the Hong Kong Stock Exchange and is consistently ranked in the top 25 among FTSE-100 companies by market capitalisation.

Standard Chartered has a history of over 150 years in banking and operates in many of the world's fastest-growing markets with an extensive global network of over 1,400 branches (including subsidiaries, associates and joint ventures) in 56 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas.

As one of the world's most international banks, Standard Chartered employs almost 60,000 people, representing over 100 nationalities, worldwide. This diversity lies at the heart of the Bank's values and supports the Bank's growth as the world increasingly becomes one market.

With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East.

Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East. Serving both Consumer and Wholesale Banking customers worldwide, the Bank combines deep local knowledge with global capability to offer a wide range of innovative products and services as well as award-winning solutions.

Trusted across its network for its standard of governance and corporate responsibility, Standard Chartered takes a long term view of the consequences of its actions to ensure that the Bank builds a sustainable business through social inclusion, environmental protection and good governance.

Standard Chartered is also committed to all its stakeholders by living its values in its approach towards managing its people, exceeding expectations of its customers, making a difference in communities and working with regulators.

In China, the Bank set up its first branch in Shanghai in 1858, and has remained in operation throughout the past 150 years.  Standard Chartered Bank (China) Limited is one of the first banks to incorporate officially in China on 1 April, 2007. This demonstrates the Bank’s commitment to the China market, and its leading position as a foreign bank in the banking industry. 

Standard Chartered China has one of the largest foreign bank networks – with 13 branches (approval for the Hangzhou representative office to upgrade to a branch has recently been granted and preparation for official opening is in progress), 23 sub-branches and 2 representative offices in China.  In 2006, Standard Chartered China was named the “Top Ten Most Popular Foreign Banks” by Global Financial Development Forum, the “Best Social Credible Foreign Bank” by China Finance Website and has been granted the “Outstanding Innovative Service Award” by China Business.

For more information on Standard Chartered, please log on to www.standardchartered.com