Everbright Overseas Infrastructure Investment Fund, L.P. Completes Its Second Closingto target overseas infrastructure opportunities and echo Belt and Road Initiative
Everbright Overseas Infrastructure Investment Fund L.P. (“Fund”), a private equity fund sponsored and managed by China Everbright Limited (“CEL”, stock code: 165.HK), has completed its second closing on 29 September, 2017 with USD 100m from a wholly-owned subsidiary of China Life Insurance (Group) Company, with an expectation to increase the commitment amount in the future. The target size of the Fund is US$1 billion.
The fund currently has two investments, one of them being the Tirana International Airport SHPK (“TIA”), an international airport in Albania. This asset was transferred to the Fund on 14 July 2017. Since acquisition, the airport’s total revenue has increased by 19% against the comparable period in 2016. Another investment is an optic fibre network company in Hong Kong, leasing its optical fibre assets situated in the rural area and villages to telecom operators. Its business is in line with the latest government policy as stipulated in the latest Policy Address of the Chief Executive of the HKSAR, supporting telecom operations in building optic fibre network in the said area, hence provides significant value in both social and economic benefit.
The Fund primarily invests in equity and equity-linked securities of infrastructure related companies globally giving rise to a controlling or significant minority interest, with the objective of providing investors with a balance between risk-adjusted return and stable cash yield. The Fund in general targets companies with proven operational track record and sound business model, in addition to solid growth and stable cash income. The Fund expects to invest in transportation, telecommunication, renewable energy, car parking and other social infrastructure, oil & gas pipeline and storage, as well as utilities sectors. The Fund will strive to create shareholder value through a full range of levers, including strategic expansion plan execution, operational improvement initiatives, realignment of capital structure and bolt-on acquisitions, to assist the investees in expanding their businesses and achieve higher efficiency.
The Fund is available only for investment by professional investors (as defined under the Securities and Futures Ordinance, Cap.571 of the Laws of Hong Kong). Investment involves risks. Fund prices may move up or down. Past performance of any fund and securities is of no guide to future performance. Professional investors should refer to the offering documents (including the risk factors) before investing. This document is for information only and does not in any way constitute an offer or invitation to acquire, dispose of, subscribe for or underwrite securities or funds or to take part in investment arrangements.
