Hong Kong’s First Equity Finance and IFA Capital Raise US$120 Million via Innovative Insured Bonds for Leading Wuxi and Nanjing Corporations.
HONG KONG, July 22, 2014 – (ACN Newswire) – Hong Kong-based First Equity Finance Company Limited (“First Equity”) and IFA Capital (“IFA Capital”) today confirmed they had raised US$120 million via innovative insurance-backed bonds for two leading Chinese corporations.
Jiangsu Sujia Group Ltd (“Jiangsu Sujia”) will raise US$100 million to construct a Continuing Care Retirement Community (“CCRC”) in Tai Hu, Wuxi. This will be the first private high-end CCRC in Jiangsu Province. The project will occupy a total area of 150 acres and will comprise a 485-unit retirement home, a 300-bed hospital and 200-bed nursing home. The facility is expected to be operational by April, 2016. With a term of ten years, the proceeds from the bond will finance Jiangsu Sujia’s CCRC capital expenditure, including construction costs, facilities and medical equipment.
Nanjing Lilang Technology & Science Co Ltd (“Nanjing Lilang”) will raise US$20 million via a ten-year bond to accelerate the production and sales of the Group’s LED industrial and maritime lighting products in Nanjing. It will also use the funds to complete the construction of its industrial waste-water treatment, air treatment (desulfurization and denitrification), soil and river management projects. Nanjing Lilang has 34 registered product patents and is in the process of registering 24 new patents relating to its LED products and communication systems. The business has extended to industrial wastewater and municipal wastewater treatment, sewage treatment, flue gas desulfurization and denitrification systems.
First Equity (www.firstequity-finance.com) is pioneering the insurance-backed bond market. With operations in Asia and Europe, clients in the healthcare, leisure, hotel, property development, shipping, energy and mining sectors have retained the company and its associates as they issue bonds. The company has specific criteria for a potential client: the business has to be asset-backed and have a clear business plan for the use of funds.
Once due diligence has been completed, bonds are insured through companies operating in the international markets, including Lloyds of London, and funds raised from institutional investors in Asia, Europe and the Middle-East including pension funds, insurance companies and fund managers.
IFA Capital (www.ifacapitalco.com) is a leading global capital-raising firm with offices in Singapore, Taipei, Abu Dhabi, Shanghai, Seoul, Beijing, Nanjing and the Cayman Islands. IFA Capital specialises in raising capital for private companies through marketing their equities, bonds and other forms of securities in the secondary market.
Working in collaboration with their strategic partners, the firm has raised US$650 million for clients since 2008. IFA Capital has decades of experience in international corporate finance and investment banking and works with leading fund managers, underwriters, private equity and venture capital firms, banks and accounting firms.
Mr Reginald McNaughton, First Equity’s President said in Hong Kong today, “We are delighted to be helping our two clients grow via the raising of these funds. Many corporations are frustrated by the lack of capital available in the market and we are pleased to provide a competitive alternative. We are able to meet their requirements through our innovation and experience. Key for First Equity when considering a client’s suitability is the demonstration of significant underlying assets and their potential for appreciation, a proven business plan and management team and the demonstration of suitable cashflow from the investment.”
“We are pleased to be able to collaborate with First Equity to assist Jiangsu Sujia Group and Nanjing Lilang to raise US$100 million and US$20 million respectively. There has been significant interest from many Chinese companies to raise capital outside of China and we see this trend continuing”, said Mr. Paul Wan, President of IFA Capital.
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