Beijing, May 27, 2005
—The International Finance Corporation, the private sector arm of the World Bank Group, today announced an agreement to provide up to $5 million equity investment to the BioVeda China Fund. The private equity fund is being established by a select group of institutional investors to support the development of Chinese biotech and life sciences companies.
The fund will be managed by BioVeda Capital, a biotech investment firm with offices in Singapore, United States and a new office set to open in Shanghai, China. BioVeda Capital presently manages a $32 million venture fund that has invested in the U.S. and Asia. The firm’s Principals are Dr. Zhi Yang, who has two decades of experience in biotechnology, having held senior scientific and management positions in a variety of U.S. and Chinese biotech and pharmaceutical companies, and Damien Lim, who has over 16 years of private equity and investment banking experience in Asia.
“We believe IFC’s investment in the BioVeda China Fund will aid China’s growing biotech industry. Given China's advantages in education, manufacturing and human capital, the industry is expected to grow and develop into a leader in Asia.” said IFC Director Rashad Kaldany, who has been leading IFC’s efforts in biotech investments. “Chinese biotech and life science pioneers have enormous potential, but lack access to finance in a system dominated by commercial banks. This fund will provide a new source of capital for these businesses and give them access to global expertise and skills to help them succeed in a competitive global industry" added IFC Director Haydee Celaya, who heads IFC’s Private Equity and Investment Funds Department.
Dr. Yang said “IFC was an important partner and we look forward to further developing the biotech industry in China with them ” Mr. Lim added, “With this first dedicated life science venture fund in China, we hope to provide momentum to the development of a thriving biotechnology sector in China while delivering superior returns to our investors.”
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
