On April 6, 2017, the Finance Center for South-South Cooperation (FCSSC), China Everbright Securities International Limited (EBS International) and Oriental Patron Financial Group Limited (Oriental Patron) signed a framework agreement in Hong Kong, announcing that they will jointly set up the “Belt and Road Fund” to expand their investment distribution in countries along the Belt and Road.
The Fund will explore M&A opportunities in line with UN Sustainable Development Goals and the Belt and Road Initiative for Chinese companies, covering clean energy, renewable energy, science and technology innovation, culture and sports, health care, agriculture and other industries that can continuously generate jobs. With a diversified investment & financing mode such as a combination of equity, debt and convertible bonds, the first phase of the Fund has a scale of 200 million USD (around 1.55 billion HKD), jointly funded by EBS International and Oriental Patron.
As an integral platform set under the United Nation’s Sustainable Development Agenda framework, FCSSC specializes in production capacity cooperation, development experience exchange and financial services, and hopes to give full play to its influence in the financial markets to channel more private capitals towards UN Sustainable Development Goals and the Belt and Road initiative; to strengthen cooperation among corporates, capitals and international organizations and facilitate the flows of private capitals to sectors encouraged by the UN and China, so as to promote the sustainable development of economy, environment and society as a whole. EBS International is a company providing one-stop financial services within and outside China. It possesses vast market resources and enjoys the linkage effects from its business in China. Oriental Patron has been long dedicated to cross-border and cross-industry investment. With a portfolio covering listed and unlisted companies in many regions and industries around the world, Oriental Patron is very strong in investment & financing and industrial integration. Being respectively a founding member and an important partner of FCSSC, Oriental Patron and EBS International agree with the ideas of FCSSC and hope to make the “Belt and Road Fund” a starting point for close cooperation. In this tripartite cooperation, FCSSC will provide targeted strategic consulting and investment recommendations while Oriental Patron and EBS International jointly make the investment decision as co-managers of the Fund. The three parties will actively explore investment projects in countries along the “Belt and Road”, make good use of their own resources to provide various consulting services and financial services such as financing & credit, investment banking and wealth managementto the Fund and its funding projects.
Since the announcement of the “Belt and Road” initiative, Chinese companies have been exploring new ways for internationalization. According to statistics from the Ministry of Commerce, the overseas direct investment (ODI) of Chinese companies in countries along the “Belt and Road” amounted to 14.5 billion USD in 2016. A number of key infrastructure projects are making steady progress. Chinese companies are featuring in “made in China” and “Chinese services” fields.
The establishment of the “Belt and Road Fund” constitutes a milestone in the partnership between FCSSC, EBS International and Oriental Patron. This tripartite cooperation not only contributes to a win-win outcome by consolidating and expanding the cooperative relationship, but also enables the three parties to take advantage of their competitive resources to grasp opportunities created by the “Belt and Road” initiative. Through finance, the partnership can support Chinese companies’ efforts in channeling capitals, talents and technology to countries along the “Belt and Road” and create commercial value for different stakeholders.
About Finance Center for South-South Cooperation
The Finance Center for South-South Cooperation (FCSSC) is an integral platform set under the United Nation’s Sustainable Development Agenda framework, which specializes in production capacity cooperation, development experience exchange and financial services, so as to promote pragmatic cooperation and partnerships between governments of developing countries, private enterprises, multilateral development institutions and international development assistance organizations. In addition, guided by successful models and using industrial projects as the vehicle, the FCSSC provides comprehensive solution plans for South-South cooperation projects. It successfully established an industrial zone in Djibouti, work together with the Development Research Center of the State Council to host the annual “Silk Road Forum”, jointly host the “South-South Education Program for Economics and Finance” with Tsinghua University People’s Bank of China School of Finance, and the annual “One-Belt-One-Road Inclusive and Sustainable City Exhibition and Dialogue” with the United Nations Industrial Development Organization (UNIDO), and manage the “UN Social Impact Fund” at the same time.
About EBS International
China Everbright Securities International (EBS International in short), owned by Everbright Securities Co., Ltd. (public listed company in Shanghai Stock Exchange, stock No. 601788) is the Everbright Group’s securities service platform in Hong Kong. It strives to provide clients with full-fledged financial services in investment banking, insurance and asset management. This genuinely positions EBS International as a “one-stop financial services platform”. After years of solid and pragmatic work and penetration, EBS International is now one of the most reputable Chinese investment banks in the Hong Kong capital markets.
About Oriental Patron
Listed in the main board of Hong Kong Stock Exchange (stock No. 01140) in 2003, Oriental Patron Financial Group Limited (Oriental Patron) is a leading financial services group in Hong Kong. It has been long dedicated to cross-border and cross-industry investment. With a portfolio covering listed and unlisted companies in many regions and industries around the world, it is very strong in investment & financing and industrial integration. The group has a large network in investment and industrial partnership, an experienced team and strong capital management capacity. Oriental Patron is a member of the Oriental Patron Financial Group. Founded in 1993, the group is a financial services group, based and fully licensed in Hong Kong. It provides a diverse range of financial services, from Advisory to Investing, from Financing to Securities and Research. Since its foundation, the Group has successfully provided services to hundreds of companies, by raising money for emerging Chinese companies and helping foreign companies enter China.