GE Commercial Finance is expanding its presence across China after having invested US$50mn in the Chinese credit guarantee company Credit Orienwise (COG). Through its investment it has purchased the shares from COG’s controlling shareholder, marking on a fully converted basis approximately 7.8% of the total shares of COG.
As a strategic shareholder, GE will now appoint a director to COG’s board of directors.
GE has also signed a memorandum of understanding with COG, under which the two companies will work to expand the range of products and services available for China’s small and medium-sized enterprise market. GE and COG will also set up a joint venture focussing on international and domestic factoring, with the intention to expand into other trade finance products.