The International Finance Corporation, the private sector arm of the World Bank Group, will make a US$20 million preferred equity investment in SinoSpring Utility Ltd and a US$25 million loan to Tianjin Dagang NewSpring Company, a wholly owned subsidiary of SinoSpring.
SinoSpring was set up to develop build-own-transfer or build-own-operate projects in water treatment, including seawater and wastewater, in China. Its shareholders are Hyflux Ltd and RB (Labuan) Ltd. Through its subsidiaries, SinoSpring is currently executing eight water projects in China.
IFC's preferred equity investment will help finance SinoSpring's projects in China. IFC's loan will finance Dagang NewSpring, a seawater desalination plant in Dagang district, to supply the Tianjin municipality, which suffers from acute water shortages. Seawater desalination is a competitive option for Tianjin as an alternative source of water. Once completed, Dagang NewSpring will be China's largest desalination plant, expanding the city's water resources and providing water to industrial users.
Olivia Lum, Hyflux's CEO and President, said, "Hyflux welcomes this partnership with IFC. The financing brings to fruition our strategy to finance and develop our China projects through SinoSpring."
