IFC to invest $35m in China Everbright Water to improve wastewater treatment

International Finance Corporation (IFC), a member of the World Bank Group, intends to invest $35m in Chinese wastewater treatment firm, China Everbright Water.

The investment is expected to support the expansion plans for the company which will help in the preservation of freshwater resources and control pollution in the country.

China Everbright Water will issue around 120 million new ordinary shares to IFC and Dalvey Asset Holding, a subsidiary of RRJ Capital’s Master Fund II, through a private placement.

The merged company formed by leading Chinese wastewater operators China Everbright International and HanKore Environment Tech Group, intends to serve one million new residential customers in China through the expanded service.

China Everbright Water will utilise the funds to increase its annual wastewater treatment, water re-use, and sewage treatment capacities by an additional 1,800 million tons by 2018, through increasing its capacity in wastewater treatment, water re-use, and sewage treatment businesses.

The company will also increase the discharge standards in its existing HanKore wastewater facilities, IFC informed.

Everbright International CEO Chen Xiaoping said: "The introduction of IFC and RRJ, two internationally well-known investment institutions, as the strategic investors, not only optimises the shareholding structure of Everbright Water, but also strengthens and advances our future development."

IFC country manager for China, Korea, and Mongolia Simon Andrews said: "A robust water sector is crucial to China’s sustainable urbanisation, providing access to critical services and helping reduce pollution.

"We are keen to provide tailor-made financing and knowledge to industry leaders such as Everbright Water so they can make the sector more competitive and efficient."