A Hong Kong-based investor and a global capital raising firm have accumulated U.S. $100 million via insurance-based bonds for the development of a Chinese continuing care retirement community (CCRC).
Assisted by Hong Kong’s First Equity Finance Company and IFA Capital, Chinese development company Jiangsu Suja Group Ltd. will raise the $100 million to construct a CCRC in Tai Hu, Wuxi—the first high-end CCRC in Jiangsu Province, according to a release from the company.
The project, which is expected to be operational by April 2016, will incorporate a total of 150 acres and will comprise a 485-unit retirement home, a 300-bed hospital and 200-bed nursing home.
With a term of 10 years, the proceeds from the bond will finance Jiangsu Suja’s CCRC capital expenditure, including construction costs, facilities and medical equipment.
First Equity specializes in raising funds for private companies by selling the company’s equities, bonds and other forms of securities in the secondary market. The firm has operations in Asia and Europe, which includes clients in the healthcare, leisure, hotel, property development, shipping, energy and mining sectors.
Once due diligence has been completed, First Equity issues bonds through companies operating in the international markets and raises funds from institutional investors in Asia, Europe and the Middle-East, including pension funds, insurance companies and fund managers.
IFA Capital also specializes in raising capital for private companies through marketing their equities, bonds and other securities in the secondary market.
With offices in Singapore, Taipei, Abu Dhabi, Shanghai, Seoul, Beijing, Nanjing and the Cayman Islands, IFA Capital has raised U.S. $650 million for its clients since 2008. The company works with fund managers, underwriters, private equity and venture capital firms, banks as well as accounting firms.
Together with First Equity, IFA has also helped raise U.S. $20 million for Nanjing Lilang Technology & Science Co. Ltd via a 10-year bond to accelerate the production and sales of the company’s LED industrial and maritime lighting products. The funds will also be used toward the construction of the company’s industrial waste-water treatment, air treatment, soil and river management projects.
“We are delighted to be helping our two clients grow via the raising of these funds,” stated First Equity President Reginald McNaughton in a release. “Many corporations are frustrated by the lack of capital available in the market and we are pleased to provide a competitive alternative.”
The most critical criteria for First Equity when considering a potential client is that the business has to be asset-backed and have a clear business plan for the use of funds provided.
“We are pleased to collaborate with First Equity to assist Jiangsu Suja Group and Nanjing Lilang to raise US $100 million and US $20 million, respectively,” stated Paul Wan, president of IFA Capital. “There has been significant interest from many Chinese companies to raise capital outside of China and we see this trend continuing.”
Written by Jason Oliva