Baring Asia & IFC co-invest in China

Baring Private Equity Asia has joined forces with the private sector arm of the World Bank to invest $47 million in a Chinese producer of environmentally-friendly refrigerants.

Baring Private Equity Asia and International Finance Corporation have invested $47.2 million (€35.0 million) for a combined 27.3 percent stake in China’s Dongyue Group, a producer of environmentally friendly refrigerants.

The investment will be used to increase Dongyue’s production capacity and develop its silicon business.

Established in China’s Shandong province in 1987, Dongyue is the dominant supplier to more than 100 air-conditioner manufacturers and has gained a 40 percent market share in China for its main products. These include refrigerants, fluoropolymers and other silicon-related products.

IFC is the private investment arm of the World Bank. Lars Thunell, IFC executive vice president and chief executive officer, said: “IFC’s investment is supporting Dongyue’s shift toward more environmentally-sound refrigerants and helping develop China’s organic silicon industry.”

Hong Kong-based Baring Asia is investing from a $490 million fund it raised last year to invest in opportunities across three main markets: China, India and Japan. The fund manager recently invested $100 million in two Chinese steel-related businesses.