An investor consortium including affiliates of Kohlberg Kravis Roberts & Co. L.P. (KKR), Government of Singapore Investment Corporation (GIC SI) and China International Capital Corporation Limited (CICC) announced an investment of $160m for a minority stake in International Far Eastern Leasing Company Ltd., a provider of financial leasing in China and a subsidiary of Sinochem Group.
The investment will support Far Eastern’s future growth as it moves to capitalize on the attractive potential in the underdeveloped financial leasing space in China.
Sinochem will retain a controlling stake in Far Eastern.
Commenting on the financing, Mr. Kong Fanxing, Chief Executive Officer of Far Eastern, said: “We are very excited to have world-class investors, including KKR as the lead investor, together with GIC and CICC, as long-term partners in Far Eastern’s development.
“In addition to capital, their experience investing in and growing financial services businesses globally brings tremendous value to Far Eastern and will enable us to further develop our ability to provide integrated and innovative business services around our core business of financial leasing.
“This investment will also help support the Shanghai government’s long term goal to develop the city into a global financial and shipping center”.
Shanghai-based Far Eastern is focused on providing financing solutions for its clients in sectors with stable cash flow and sustainable growth potential, including medical, printing, education, infrastructure construction, shipping, machine tool sectors, etc.