LCP Lon.Asia China

RNS Number:9309B
London Asia Chinese Private Equity
13 August 2007


13 August 2007


                London Asia Chinese Private Equity Fund Limited
                            ("LACPEF" or "the Fund")

                 Investee Company to Raise up to US$60 million


LACPEF, the AIM traded, China focused investment fund, is pleased to announce
that its investee company Asia Water Technology Ltd. ("Asia Water" or "the 
Group") is raising up to US$60 million in new funds to finance the continued
expansion of its water treatment business in China.


Asia Water, listed on Singapore's SESDAQ stock exchange, provides comprehensive
and integrated engineering solutions for water purification and wastewater
treatment, which includes engineering, procurement and commissioning of such
systems.


The finance is via the issue of US$60 million of bonds, issued in two equal
tranches of US$30 million, comprising US$ 15 million in structured bonds and US$
15 million in convertible bonds.  Both the convertible and structured bonds have
a five-year maturity period.


The Group is also issuing approximately 11.4 million warrants to bond
subscribers. When fully exercised, the warrants are expected to raise an
additional US$5.0 million for the Group.  The warrants have a six year maturity
period.


Asia Water released results for the half year ended 30 June 2007 showing profit
before tax up 7% to #1.7 million and net assets of #21 million.


The bonds and warrants issue is conditional on shareholders' approval to be
obtained at an extraordinary meeting and the necessary approvals from the
Singapore Stock Exchange among other conditions.


Mr Huang Hanguang, Asia Water's Chief Executive Officer, said: "The completion
of the bonds issue will be a timely boost to our efforts to move ahead of
competition and gain a larger share of the fast-growing tap water and wastewater
treatment sector in the PRC. We expect more and more projects to be available
from this sector on a Build-Operate-Transfer/Build-Own-Operate and
Transfer-Operate-Transfer basis, which requires substantial investment but
promises a stable recurring income for up to 30 years. We have already
identified a few major potential projects and expect to be in a strong position
to secure these contracts with the proceeds from this fund-raising exercise."


Simon Littlewood, Fund Director, said: "This is the second significant fund
raising by our investee companies in the last few weeks, following the US$20
million raised by China New Energy in late July.  We are working with several
other of our investee companies to raise funding for them to finance their
continued expansion."


For further information please contact:

John West/Andrew Dunn                 Cecilia Wong                           Hugh Field
Tavistock Communications              London Asia Ltd                        Collins Stewart Europe Ltd
Tel: 020 7920 3150                    Tel: +852 2251 8373                    Tel: 020 7523 8000
                                      cecilia.wong@londonasia.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

MSCOKKKNABKDOFD

London Asia Chinese Private Eq.F (LSE:LCP)
Historical Stock Chart
From Jun 2024 to Jul 2024

London Asia Chinese Private Eq.F (LSE:LCP)
Historical Stock Chart
From Jul 2023 to Jul 2024