China’s Everbright hits $459m first close of ESG fund; halves target corpus to $1.5b

Renewable energy/Illustration/ Internet Archive

State-owned conglomerate China Everbright Group’s subsidiary China Everbright Limited announced on Monday that it has reached the first close of its green energy-driven environment, social, and governance (ESG) sub-fund, at 3 billion yuan ($459 million).

The sub-fund, which was dubbed “China Everbright One Belt One Road Green Fund”, was jointly launched by China Everbright Group, China Everbright Limited, and China Everbright Environment Group (CE International) in April 2020.

The three cornerstone investors have seeded 500 million yuan ($76.6 million) each to the fund, Everbright said in a statement.

Everbright has also roped in Beijing E-Town Capital — a state-owned investment corporation for scientific and technological innovations in the Beijing Economic-Technological Development Area (BDA) — as its limited partner (LP). E-Town Capital agreed to pump 1.5 billion yuan ($229 million) in the fund, according to a company filing with The Stock Exchange of Hong Kong.

The fund now targets to raise a corpus of 10 billion yuan ($1.5 billion), which is half of the sum it had previously planned to raise. In April, China Everbright had sought to raise an aggregate of 20 billion yuan ($3 billion) to finance environmental and sustainable businesses across countries and regions along China’s Belt and Road Initiative.

From the debut fund, the parties will aim to “invest in green environment, green energy, green manufacturing and green living industries that provide products and services to China, countries along the Belt and Road initiative and other businesses,” it said.

It will conduct the investment activities by financial support, equity investment, mergers & acquisitions, mezzanine financing, and convertible bond.

China Everbright Limited, set up in 1997, has been engaged in macro asset management strategy, with a specific focus on fund and investment business. As of June 30 this year, it has managed 157 billion yuan ($24 billion) in assets and 74 funds — including primary market funds, secondary market funds, prestige capital asset management and funds of funds. 

It founded CE International in 2013 to operate business in synergy with eco-friendly environment protection across the areas of waste-to-energy, biomass integrated utilisation, hazardous and solid waste treatment, and ecological restoration. 

Before the ESG fund, other funds jointly launched by China Everbright include a 10 billion yuan ($1.5 billion) CEL AI Economy Fund with AIoT firm Terminus and a similar-sized Yangtze River Delta-focused innovation fund in partnerships with East China’s Suzhou-based investors.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.