Singapore Corporate News - 5 Oct 2007

Asia Env gets up to US$15m funding from IFC

ASIA Environment Holdings said yesterday it intends to obtain funding from International Finance Corporation (IFC), a member of the World Bank Group.

Under the terms of the proposed transaction, IFC will subscribe for up to 20.4 million non-listed warrants issued by Asia Environment that can be converted into 20.4 million new shares. This is in consideration for IFC extending a revolving loan of up to US$15 million to Asia Environment.

Each warrant will entitle IFC to subscribe for one new share at an exercise price of S$0.74. The warrants expire three years from the date of issue.

The exercise price is a 3.89 per cent discount to the prevailing S$0.77 market price of Asia Environment shares before the announcement of the deal.

Asia Environment said it intends to use the IFC funds primarily to finance investments in new build-operate-transfer and transfer-operate-transfer projects.

Asia Environment has been on the fund-raising path in recent months. In July it announced a share placement to raise about S$24 million for its projects, issuing 30 million new shares at S$0.8127 apiece.

The company has recently announced several deals. Through its units, it has entered into agreements with the Jingdezhen City and Wangcheng County governments in China to build and operate waste-water treatment plants worth an estimated 135 million yuan (S$27.3 million).
It also agreed to acquire a further 25 per cent of Nanchang Water Holdings Pte Ltd for S$5.4 million cash, making it a wholly-owned subsidiary.

Asia Environment competes with other Singapore-listed waste-water treatment companies such as Darco Water, Sinomem Technologies and Sino-Environment Technology Group.