Hony launches $300m Belt and Road fund, invests in Kazakhstan
Hony Capital has partnered with its portfolio company China Glass Holdings (CGH) to launch a $300 million fund that will invest in glass production projects in countries covered by the One Belt One Road (OBOR) initiative.
The Belt and Road Glass Fund has already made its debut investment, acquiring a 69.71% stake in Kazakhstan-based Ordan Glass. The company is building a production facility with an annual capacity of 197,000 tons of float glass. China Triumph International Engineering – its parent company Triumph Group is the largest shareholder in China Glass – is the main contractor for the construction project.
The fund is co-managed by a joint venture set up by a subsidiary of CGH and Hony Group Management – which is controlled by Legend Holdings, a filing showed. The fund has received a commitment from CNIC Corporation, a state-backed investment firm.
Previously known as Jiangsu Glass Group, China Glass manufactures a variety of glass products. Hony acquired a controlling stake in the company in 2004 and listed it in Hong Kong in the following year. It was the private equity firm's first state-owned enterprise (SOE) restructuring deal.
China Glass has eight production bases nationwide with a total daily output of 6,630 tons. About one-third of its products are exported. The company said the fund was established to support efforts to expand its operations overseas, leveraging opportunities created by the OBOR initiative.
CNIC was registered in Hong Kong in 2012 and has a remit to help Chinese SOEs expanding overseas. It received an initial $11.11 billion in funding from the State Administration of Foreign Exchange (SAFE) and the State-owned Assets Supervision and Administration Commission.
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