GE Commercial Finance has made an investment of US$50 million in Credit Orienwise Group Limited (COG) by the purchase of COG’s shares from its controlling shareholder. Credit Orienwise is one of the largest private guarantee companies and SME lenders in China. Morgan Stanley Asia Limited was the exclusive financial advisor to the controlling shareholder of COG in this deal.

In addition, COG has entered into a memorandum of understanding (“MOU”) with GE to expand its product and services to Greater China small and medium enterprises. Pursuant to the MOU, GE and COG intend to setup an equally owned joint venture focused initially on the business of international and domestic factoring, and expandable to other trade finance products, inventory financing, purchase order financing or leasing. The memorandum of understanding includes an agreement by GE to provide technical services to COG.

COG’s key businesses include corporate, individual and performance guarantees, as well as entrusted lending and advisory services, mostly to small and medium-sized enterprises (SMEs). Its strategic investors include GE, Asian Development Bank, Citigroup Venture Capital International and The Carlyle Group. As of December 2006, it had total assets of RMB3.5 billion (US$449 million). (Business Wire)