RRJ, OCBC invest in Chinese paper packaging firm – update

OCBC's individual contribution was $15.15 million. The cumulative proceeds will be used to expand the company's operations into the high-end paper-based color printing and packaging market. 

Based in Xiamen, Fujian province, Nature provides packaging services for sectors including apparel, food and beverages and home appliance. Its clients include Hangzhou Wahaha Group, Tsingtao Brewery, and sportswear makers 361 Degrees and Xtep International Holdings.

China's paper packaging industry is highly fragmented and consolidation is seen as likely. Two years ago, TPG Capital entered the space, acquiring Chinese packaging company HCP Holdings from its family owners in a deal worth around $500 million.

RRJ, which was set up in 2011 by Richard Ong, formerly of Goldman Sachs and Hopu Investments, reached a final close of around $3.5 billion on its second fund last year. It now has $5.9 billion in assets under management across two funds, with investments in China, Southeast Asia, Europe and North America.

Last week, it teamed up with Temasek Holdings to invest $250 million in Chinese logistics player Shanghai Yupei Group, supporting the nationwide rollout of its warehouse network.

OCBC set up its mezzanine capital unit, which focuses on proprietary private equity and special opportunities, in 2003. The division has invested in more than 80 companies, of which at least 20 are operating in China.

Sectors of focus include modern agriculture, consumer, healthcare, environmental technology and high-end manufacturing.

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• Topics
• Greater China
• Industrials
• Expansion
• China
• RRJ Capital
• Growth capital
• manufacturing
• Mezzanine
• OCBC