IFC invests $150m in China's Tian Lun Gas

According to a release, $75 million will come via AMC's IFC Global Infrastructure Fund, a $1.2 billion vehicle that invests in infrastructure projects in developing countries alongside IFC. The other half will come from IFC's own balance sheet.

Headquartered in Zhengzhou, Tian Lun had 44 city gas concessions in China, and operates 36 natural-gas filling stations across 10 provinces - including Gansu, Guangdong, and Yunnan - as of December last year.

The investment is intended to help expand the company's network and increase the supply of natural gas to less developed cities over the next three years. This is the IFC Global Infrastructure Fund's first Asia transaction. The combined sum also represents the largest infrastructure equity investment in East Asia by either IFC or AMC.

The deal is the latest in a series of IFC investments in China's gas sector aimed at making the low-carbon fuel more widely available - particularly in third- and fourth-tier cities. Last month, IFC announced a $300 million debt-financing package for China Gas Holdings. It also invested in ENN Energy Holdings Limited in 2013.

"Natural gas is a sustainable, environmentally friendly, and economical fuel source with vast potential in China," said Vivek Pathak, IFC's director for East Asia and the Pacific. "Our partnership with Tian Lun Gas reflects our support for the company's business model and our commitment to helping China achieve greener growth."

AMC is wholly-owned subsidiary of IFC and manages $8.1 billion of capital across eight investment funds, including the IFC Global Infrastructure Fund. Law firm White & Case advised IFC on the transaction.

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