Beijing, May 18, 2015
—IFC, a member of the World Bank Group, and a fund managed by the IFC Asset Management Company have invested $150 million in China Tian Lun Gas Holdings Limited to help expand the company’s natural-gas distribution infrastructure in China. The equity investment is expected to substantially increase the supply of natural gas, a cleaner and more economical form of energy than traditional fuels such as coal, diesel, and gasoline, particularly in less developed Chinese cities over the next three years.
The investment includes $75 million from IFC’s own account and $75 million from the IFC Global Infrastructure Fund, a $1.2 billion fund that invests alongside IFC in infrastructure projects in developing countries. This marks the first deal in the region by the IFC Global Infrastructure Fund, one of AMC’s eight investment funds. On a combined investment basis, this is also IFC and AMC’s largest infrastructure equity investment in East Asia.
“IFC and the IFC Global Infrastructure Fund’s international expertise in infrastructure investments can help us achieve our goal of increasing access to clean energy for Chinese households and businesses,” said Yingcen Zhang, Chairman of Hong Kong-listed Tian Lun Gas. “We value our partnership with IFC and GIF whose investment will support our growth.”
This investment is the latest in a series of IFC investments in China’s gas sector to make the low-carbon fuel more available to millions of Chinese households and for industrial, commercial, and transportation use in third- and fourth-tier Chinese cities. Last month, IFC announced a $300 million debt-financing package to China Gas Holdings Limited; it also invested in ENN Energy Holdings Limited in 2013.
"Tian Lun Gas will be the IFC Global Infrastructure Fund's first commitment in Asia,” said Gavin Wilson, CEO of the IFC Asset Management Company. “We are excited by the opportunity to partner with a dynamic group as they participate in the rapid transformation of China's natural-gas sector."
Addressing air pollution is a key priority for China. Decades of fast economic growth, accompanied by heavy use of coal and oil for energy, has increased smog in cities. Natural gas, while also a fossil fuel, burns more cleanly and is less carbon intensive than coal, wood, heavy fuel oil, gasoline, and diesel, making it a climate-smart energy choice.
“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.”
As of December 2014, Tian Lun Gas had 44 city gas concessions in China. It operated 36 natural-gas filling stations across 10 provinces, including Gansu, Guangdong, and Yunnan. The company is headquartered in Zhengzhou, China.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests third-party capital, enabling outside investors to benefit from IFC’s expertise in achieving strong equity returns, as well as positive development impact in the countries in which it invests. It manages $8.1 billion of capital across eight investment funds, including the IFC Global Infrastructure Fund. For more information, visit
www.ifcamc.org
About the IFC Global Infrastructure Fund
The IFC Global Infrastructure Fund, LP invests alongside IFC in equity and equity-related investments in infrastructure projects and companies in developing countries.
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