- POSTED: 08 Jan 2014 22:56
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OCBC Bank has launched a S$127 million private equity fund under the Shanghai Qualified Foreign Limited Partner (QFLP) Pilot Programme.
SINGAPORE: OCBC Bank has launched a S$127 million private equity fund under the Shanghai Qualified Foreign Limited Partner (QFLP) Pilot Programme.
The OCBC Capital (Shanghai) Equity Investment Fund will enable OCBC Bank to convert up to S$127 million worth of foreign denominated capital into renminbi, the bank said on Wednesday.
This will then facilitate the bank in making multiple direct investments into onshore domestic Chinese companies.
Without the fund, Chinese companies would have to set up an offshore structure to receive foreign denominated funds.
They would then have to bring it back onshore and convert into renminbi for domestic investments, subject to extensive regulatory approvals.
The fund will also give OCBC greater access to onshore companies and provide an accelerated deal-making process.
It is expected to invest in privately-owned enterprises in their growth stages, with the intention of eventual listings on China's A-shares market.
The focus will be on sectors such as modern agriculture, healthcare, clean and environmental technology, and advanced manufacturing.
OCBC Bank's head of Mezzanine Capital Unit, Mr Than Su Ee, said the fund will help to level the playing field and enable the bank to compete more effectively against local private equity fund managers.