Under the agreement, Singapore-listed Everbright Water will issue about 120 million new ordinary shares to IFC and Dalvey Asset Holding, a subsidiary of RRJ Capital’s Master Fund II, via a private placement.
The increasing economy, large population, and rapid urbanization is leading to a severe water shortage in China.
A study by IFC has found that the water supply-demand gap in China will reach about 200 billion tons a year by 2030.
IFC country manager for China, Korea, and Mongolia Simon Andrews said: "A robust water sector is crucial to China’s sustainable urbanization, providing access to critical services and helping reduce pollution.
"We are keen to provide tailor-made financing and knowledge to industry leaders such as Everbright Water so they can make the sector more competitive and efficient."
Everbright International CEO Chen Xiaoping said: "The introduction of IFC and RRJ, two internationally well-known investment institutions, as the strategic investors, not only optimizes the shareholding structure of Everbright Water, but also strengthens and advances our future development."
Everbright Water was formed through the merger of China Everbright International and HanKore Environment Tech Group.
The company presently owns 32 wastewater treatment plants, four reusable water projects, a 56-km pipeline network and 10 pump stations in China.
Image: Everbright Water presently owns 32 wastewater treatment plants. Photo: Courtesy of Toa55/FreeDigitalPhotos.net.
