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.