IFC proposes $100m investment in China's Penyao

IFC’s investment will support three wastewater treatment plants and two water supply projects in China, in addition to helping Penyao rationalize its capital structure by refinancing short-term debt. The investment will be made in phases, with the first phase consisting of a loan of up to RMB410 million ($60 million), according to a disclosure. Future phases have not been determined.

Founded in 1984, Penyao manufactures water and waste water treatment equipment in addition to providing treatment services itself. The company has 19 projects either operational or in the pipeline in seven provinces in China, with a total projected capacity of 1.6 million tons per day. The projects that IFC is supporting have a total estimated cost of $172 million.

By supporting Penyao’s projects, IFC hopes to advance its goals of reducing water pollution and resulting health risks, improving access to clean water, and sustainable economic development and job creation in China’s frontier regions.

IFC is active in China as both an LP and an investor in its own right. Direct deals in the country include Hong Kong-listed school operator Minsheng Education Group and logistics operator Huochebang.

As an LP, IFC tends to support funds that advance its development goals. In the last year, it has proposed investments in Hosen Capital’s agriculture and industry-focused third fund, and the health and consumption services-oriented vehicle of Long Hill Capital Management, along with Maison Capital’s consumer-focused third fund.

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• Topics
• Greater China
• Infrastructure
• Infrastructure
• China
• IFC
• Growth capital