liliang teng - keynote address - chinese outbound investments - examining the impact of cad's...
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China-Africa Development Fund
Introduction
Liliang TENG
Chief Marketing Officer
Oct . 2012
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Contents
• Background and Mission
• Honors and Achievements
• Investment Projects
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Background
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(I) Background
• 2006 Beijing Summit
-- China-Africa Cooperation Forum
• Announcement by the Chinese President - Hu Jintao: New type of China-Africa strategic partnership through equity investment
--China-Africa Development Fund of USD 5 billion
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(II) Establishment of the Fund
Company: China-Africa Development Fund
Business: Fund investment and management
Funding: US$1 billion, Phase I, up to US$5 billion phase to phase, by China Development Bank.
Headquarter: Beijing, China
Prospect life: 50 years
-- We are the largest special purposed investment from China to Africa
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Combined Private Equity’s commercial and market driven ordination, with mission and
consideration for supporting and partnership
Development Finance Institution -- pursuing longer term profit
Enhancing partnerships between China and Africa enterprises
Promotion of local economic development and job creation
Creating Africa’s self-development capability
(III) Mandate and strategies of combination
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(IV) Types of Investments
Equity
investment
Fund
investment
Investment
management
and consultancy
Other
authorized
businesses
Quasi-equity
investment Investment forms
and business scope
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Agriculture and
manufacturing industry
Target Industries Industrial park and
free economic zones
Infrastructures
and basic industries
Resource sector
TOP OF OUR
PRIORIIES
Power ,Energy , transportation
telecommunication
and urban utilities etc.
Oil gas and minerals
(V) Industrial portfolio
Diversified ,we invest all most industries at different development stages
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(VI) Terms and conditions
We choose
projects
Investment
standards
Prospects of bilateral relationship of win-win situation
Joint venture partners –preferring experienced and
capable Chinese partner
Lower risk preference + longer term and stable return
Responsible development model with local social,
health and environmental protection commitments
Single investment size between $5--50 million,
considering phase I size of USD 1 billion
Investment term mainly between 5 to 8 years, and will
not exceed 10 years in principle.
Equity ratio <50%, normally 15-40% , we define
ourselves important minority shareholder.
Flexible and average profit premium for single project
and sector minimum requirements
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We respect the international investment standard ,hosting customs of the country
We abide by local law, regulation and requirements
We typically do more beneficial than local requirements and other FDIs, donate
schools and equipments etc.
(VII) Investment environment and social responsibilities
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Achievements of past 5 years
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Committed investment more than 50 projects, and invested 30 projects with outstanding USD2 billion USD
Leveraging USD 10 billion investments from China to Africa will be generated through our leverage effort eventually
Key sectors: Agriculture, electricity, building materials, manufacturing, industrial parks and mining sector.
Established more than 300 projects pipelines for further investments
Partnerships with more than 100 Chinese enterprises, from top SOE’s and private sectors
Networks with more than 30 African governments, and other public and private firms
Honors of achievements
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Typical investment model
Chinese
banks,
Other
Banking
facilities
Chinese Investor
African partner
Joint Venture holdings
Credit Lending
Equity Equity Equity
CADFUND
PROJECTS
Fouth representative office opened in Accra, Ghana,
Nov 11, 2011
The first representative of the CADFund was
established in Johannesburg, South Africa, on 16th
March, 2009.
Third representative office opened in Lusaka,
Zambia, Jan 10, 2011
Our presences in Africa
Second representative office opened in Addis Ababa,
Ethiopia, on 30th March,2010.
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As the China Government’s Agency, enjoys full supports from all government levels, we get guidelines from Ministries .
Welcomed by most African countries and partners with wishes to fasten the economic relationships
Networking strategic partners from top Chinese industrial and investment sectors , who are ensuring our success of investment.
China Development Bank, the world largest development
institution, and sharing project intelligence and channeling
CDB credit to its projects.
Our advantages
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Providing financial support to those who have investment
opportunities but are short of capital.
Taking investment risks with those who have good financing
capacities but are not willing to bear investment risk alone.
Seeking investment opportunities for those who lack
investment experience in Africa.
Bring Chinese partners for African countries and enterprises
who are looking for foreign investors.
Partnership between the investment requirements and
money resources
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Infrastructure
Agriculture
Economic and Trade Park
Building Material Industry
Manufacturing Industry
Our projects study
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1. Infrastructure
The Power Plant in Ghana
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2*90mw gas fired IPP with investment of USD200m,
with 36 month construction, operation since Nov,2010
The Port Project in Nigeria
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Stake in TICT with China Merchants, a capacity of
400,000 TEU, four berthes
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2. Agriculture
The Cotton Processing Project in Malawi, Zabia
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Contract 50,000 farmers for cotton planting and feeding ,with
2 processing factories of USD30m, operation since 2009
The Leather Processing in Ethiopia
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The capacity is 15,000 goat leather per day,
operational since 2010, over 50,000 herders
benefit from the project
The Sisal Project in Tanzania
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800 Hectors farm, 2600tons of sisal fiber a year
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3. Free Trade Zone and
Industrial Park
The Egypt Suez Economic and Trade Park
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1.07 sq km, 26 companies with
registered capital of $357 million
The Lekki Free Zone in Nigeria
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30 sq km land near Lagos, for construction and
establishing commercial, trading and manufacturing
cluster development.
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4. Building Material Industry
The Glass factory in Ethiopia
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40,000 tons of floating glass year, first in the country.
Employed over 600 people
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The Cement Plant in Ethiopia
500,000 tons Portland cement a year, operational since
2011
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5. Manufacturing Industry
The Heavy-Trucks CKD in SA
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NORINCO Motors BaoTou Bei Ben
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The Home Appliance Plant---Air Conditioner
in Egypt
300,000 a year, employ over 400 people
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6. Mining Sector
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Iron and ore: Liberia West coast; Guinea Simandou
Precious metals: RSA Wesizwe platinum , GoldOne Gold
Other projects: copper, chrome, manganese
Others discussion: Uranium , coal, oil and gas
Mining Projects -- Co-investments
Thanks!
www.cadfund.com