CDB to launch overseas operation, partner with KKR, TPG

CDB is a policy lender with ambitions to become a fully fledged commercial bank. It set up China Development Bank Capital in 2009 and the Hong Kong operation is due to start business on December 6, Reuters reported, citing three sources familiar with the plan.

CDB Capital has already invested in and managed 19 funds targeting non-financial sector companies. It wants to develop into a world-class asset manager with more than RMB600 billion ($94 billion) under management over the next 10 years. This ambition dovetails with the Chinese government's desire to fund overseas expansion by domestic companies.

Sino-foreign funds that have received backing from CDB Capital include the China-Africa Development Fund, the Sino-Belgian Fund, the ASEAN Fund, and Infinity Group. The latter is an Israel-based vehicle created by CDB in collaboration with Israeli conglomerate IDB Group.

Infinity Group has launched 11 renminbi and US dollar funds with local authorities in Beijing, Suzhou, Harbin, Shijiazhuang, Changzhou, Ningbo, Tianjin and Chongqing. It also manages two funds outside of China. The group claims a portfolio of 45 companies and has completed 22 exits.

The Chongqing initiative, announced in August, includes a renminbi vehicle with a target of RMB6 billion and a US-dollar vehicle worth $1 billion. It is Infinity's first fund in China managed by its wholly foreign owned enterprise (WFOE). The firm obtained approval from the Chongqing government for the Qualified Foreign Limited Partner program in May.

 

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• Topics
• Greater China
• China
• China Development Bank
• Infinity Equity
• QFLP