Yangzijiang Shipbuilding’s recently spun-off financial arm is setting up a new maritime investment fund with initial capital of up to $250m.
China’s largest privately owned shipbuilder is contributing $100m to the fund with the rest set to come from investors via a private placement.
Yangzijiang said the fund would focus on vessels in the gas sector, including LNG, LPG, liquefied ethane gas, methanol, hydrogen, ammonia and CO2.
However, it will also invest in vessels in other sectors with good marketability, such as eco-design vessels.
It will be run by Yangzijiang Financial Holding, spun off from the shipbuilder earlier this year and listed on the Singapore Exchange.
The maritime fund will be established under the variable capital company structure with multiple sub-funds, which segregates assets and liabilities from each other.
“With the group’s strategic network and industry experience in the maritime industry, we hope that our maritime fund can become an alternative and stable source of capital for the shipping industry,” Yangzijiang Financial executive chairman Ren Yuanlin said.
“We see attractive business opportunities in meeting the needs for industrial upgrades in shipbuilding, spurring the healthy growth of shipping finance, and serving as a source of venture capital for developing safe and green technologies in the sector.”
Yangzijiang has appointed shipping industry veteran Alex Yan as the manager of the fund, describing him as bringing a “rich and varied experience of project, asset and structured finance” to the role.
Before joining the company, he had stints at Klaveness Asia, Lloyd’s Register, Haitong UT Leasing, as well as Hong Kong-listed ship-leasing giant CSSC Leasing.
“Alex’s extensive experience in ship financing, ship leasing, as well as investment management and risk controls will be an invaluable addition to the group, greatly enhancing our efforts to grow the maritime fund’s assets under management over the longer term,” Ren said.
