China-ASEAN Investment Cooperation Fund

Background

China-ASEAN Investment Cooperation Fund ("CAF") is a USD-denominated offshore quasi-sovereign equity fund sponsored by the Export-Import Bank of China (“EXIM Bank”), among other institutional investors, under the direction of the Chinese cabinet – the State Council and approved by the National Development and Reform Commission. The fund targets investment opportunities in infrastructure, energy and natural resources in the ASEAN countries. CAF specializes in sustainable investments that not only bring financial growth to the investee company but also significant values to the community. The establishment of CAF was led by EXIM Bank and approved by the PRC State Council. It was formally announced by the then Chinese Premier Wen Jiabao in 2009, and further approved by the National Development and Reform Commission in 2013. Operating with a high level of integrity and international best practices, the Fund's investment professionals pursue strategic opportunities that require growth capital to generate superior returns for its investors. CAF provides capital supports to the outstanding enterprises in both China and the ASEAN region and enhance value for the sponsors. The fund is aiming to become one of the most reputable and best-performing private equity funds in the region.

CAF is not only managed by diverse international professionals with proven track records in principal investments and extensive capital markets experiences, but also has the unique ability to leverage its extensive network and resources, particularly in China, to support its investee companies for value enhancements.

The uniqueness of the China-ASEAN Fund is its strong investment power, rich industry experiences, deep understanding of the region and the target investment field, as well as the full fledge support from its sovereign investors. The capital involvement of the China-ASEAN fund could provide continuous and incomparable value enhancement and synergy to the sponsor company and the project.

Mission & Vision

Fund Management

Opportunity

--One of the largest equity fund with Chinese background focusing on the ASEAN region

--Pursuing investments in infrastructure, energy and natural resources to generate superior returns

--Ability to invest in both Greenfield and Brownfield projects, in order to realize the dual goal of achieving commercial success and best social effect as well

--Target size for the phase I of the fund is USD 1 billion and the ultimate target is USD 10 billion

--Managed by a team of international professionals with experience in principal investments, investment banking and covered industries

Investment

●Investment approach

CAF's investment professionals evaluate each potential deal opportunity based on a comprehensive due diligence process that analyzes a company's financial performance, market growth potential, industry attractiveness and competitive position. Through close cooperation, CAF supports the management of investee companies to successfully implement effective business plans that include acquisition development programs, corporate capital restructuring, scalable expansions designed to leverage competitive advantages and strategies for improving overall operating performance.

--Typical investment size of USD 50 to 150 million

--Prefers minority stake investments

--Adopts co-investment model with strategic investors

--Diversified investment channels in equity, quasi equity and other financial instruments

--Invests in both listed and non-listed companies either with majority assets located in the ASEAN region or registered in one of the ASEAN countries

--Invests in both Greenfield and Brownfield projects at the company and/or project levels

●Target sectors

Infrastructure:

Toll Road

Rail

Container Port

Airport

Telecom

Water / Wastewater

Oil & Gas Pipeline

Social Infrastructure Energy / Power:

Conventional

Renewables

Natural Resources:

Industrial metals: Ferrous and Non-Ferrous Metals

Precious metals: Gold, Palladium, Platinum and Silver

Plantation-related: palm oil, pulp and rubber

Responsible Investing

CAF is committed to conducting business in a socially and environmentally responsible manner and improving the quality of life in the communities we invest in. As such, when evaluating and selecting investment opportunities, CAF carefully assesses each prospect's guiding values and business practices. In addition to abiding by the local laws and regulations in each market we operate in, CAF also strives to align itself with market's best practices and corporate governance.

--Commitment to Environmental and Social (E&S) Performance

E&S performance is part of CAF's DNA. The Fund is highly committed to conduction business in an environmentally and socially responsible manner and improving the quality of life in the communities we invest in. In addition to abiding by the local laws and regulations in each market we operate in, CAF also strive to align itself with good market practices and sound corporate governance. With this in mind, the Fund has a developed comprehensive environmental and social (E&S) management system which is an integral process of the investment team's evaluation and selection of investment opportunities.

From the very outset of the deal flow, CAF carefully assess a prospect's guiding values and business practices to ensure a sound alignment with our own values. During the subsequent due diligence stage, CAF carefully considers a company's E&S past and existing performance against the Fund's own E&S standards. The aim is to ensure investee companies have appropriate capacity for E&S management and are operating their business in a sustainable manner.

Identifying potential gaps in an investee company's performance too often presents CAF with the opportunity to bring significant value to both a company's operations and reputation. Throughout the life of an investment, the Fund strives to provide guidance in enhancing portfolio company's E&S performance. CAF firmly believes that the goal of creating positive E&S impact goes hand in hand with the goal of generating an economic return.