Manila: The Asian Development Bank (ADB) and CD Finance Management Co., Ltd. (CD Finance) held a virtual signing ceremony for a $40 million (in yuan equivalent) loan to finance microloans to improve the livelihoods of farmers, microentrepreneurs, and women borrowers in rural areas of the People’s Republic of China (PRC).
“Accelerating access to rural finance, particularly for women, and bridging gaps in financial services are key to achieving sustainable rural development,” said Ashok Lavasa, ADB’s Vice President, Private Sector Operations and Public-Private Partnerships. “ADB is pleased to support financial institutions like CD Finance, which provide access to urgently needed finance for productive rural activities that can improve the livelihoods of rural communities and help small businesses to expand.”
At least 60% of the loan is targeted for women borrowers and is expected to benefit over 30,000 women. A gender action plan will support measures to increase focus on providing financing and other services to women, including financial education and life skills training to women borrowers and enhancing CD Finance staff capacity to better respond to the needs of female clients. CD Finance will also conduct outreach campaigns for women microentrepreneurs.
“We are pleased to receive further support from ADB,” said CD Financial Management CEO Liu Dongwen. “With the mission of eradicating extreme poverty largely completed, the focus of rural work has shifted to promoting full rural revitalization and accelerating the modernization of agriculture and rural industries. As an organization dedicated to serve rural areas and farmers, CD Finance is delighted to work with ADB to support rural revitalization, facilitate productive activities of rural households, and improve their livelihoods.”
Established in 2008, CD Finance is the largest microfinance institution in the PRC. It serves approximately 400,000 active borrowers, 72.25% of whom are women (including co-borrowers). CD Finance operates mainly in rural counties to serve the financial needs of rural low- and middle-income groups. Founded from the microfinance activities of China Foundation for Poverty Alleviation, a donor-funded organization established in 1996, CD Finance has successfully transformed into a sustainable commercial institution.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.