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China Investment Corporation finances US$500 million convertible debenture to SouthGobi Energy Resources



According to the Press Release, “Alexander Molyneux, President and CEO of SouthGobi Energy Resources Ltd., announced today that SouthGobi will accelerate the development of its Mongolian coal projects through its wholly-owned Mongolian operating subsidiary, Southgobi sands LLC. SouthGobi’s Mongolian investment program during the next three to five years is planned to include:

  • Expansion of the Ovoot Tolgoi Mine.
  • Development of the Soumber deposit.
  • Development of regional transportation infrastructure.
  • Construction of a coal washing facility.
  • Creation of approximately 300 new jobs.
  • Mr. Molyneux said financing for the investment program has been secured from a wholly-owned subsidiary of China Investment Corporation (”CIC”), which will provide US$500 million in the form of a secured, convertible debenture bearing interest at 8.0%.

    ‘Our continued exploration successes have significantly expanded our coal resources in Mongolia’s South Gobi – and now we are in a position to develop our company into a prominent regional producer and exporter,’ Mr. Molyneux added.

    ‘We recently announced our Measured and Indicated coal resource base, compliant with the Canadian NI 43-101 reporting standard, has increased from 221.2 million tonnes to 307.6 million tonnes, a jump of 39%. We also announced the initial resource at Soumber, an entirely new coal deposit in the South Gobi, and there is significant potential for other discoveries.'”

    read more: Press Release

    DP World and NIIF Joint Venture Embarks on First Investment



    Hindustan Infralog Private Limited, the US$ 3 billion joint venture formed in January 2018 between DP World and the National Investment and Infrastructure Fund (NIIF) to invest in ports, logistics and warehousing, agreed to acquire 90% of Continental Warehousing Corporation (Nhava Seva) Limited for US$ 400 million. 10% is being retained by the company’s founders – the Reddy family. Adi Keshav Reddy is the founder of Continental Warehousing. This is the first investment of the Hindustan Infralog platform.

    The sellers include Warburg Pincus India Pvt Ltd, International Finance Corporation (IFC) and Aureos Capital, a joint venture between the CDC and Norfund that was acquired by Abraaj Capital.

    Barclays, Citi and Detusche Bank advised on the transaction.

    Continental Warehousing was formed in 1997 and is one of India’s biggest container warehousing firms – operating container freight stations and private freight terminals across India. In April 2011, Warburg Pincus invested in Continental Warehousing, committing US$ 100 million. In December 2015, IFC invested US$ 25 million in equity and lent US$ 35 million in debt to Continental Warehousing.

    In India, DP World has been operating container port terminals since 1997.

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    SWFI First Read, March 18, 2018



    Surbana Jurong and China Vanke Tie up Deal for Industrial Town Projects

    Surbana Jurong, a real estate development company focused on urban projects, inked a deal with China Vanke to partner on new industrial towns in China’s midwest regions. Surbana Jurong is majority-owned by Singapore’s Temasek Holdings. The first joint project is Vanke’s Jianzhou Dream Town in Chengdu. Surbana will provide the design for this project.

    PIF Eyes Hollywood Talent

    Saudi Arabia’s Public Investment Fund (PIF) is looking at investing around a 7% stake in Endeavor, LLC, a talent agency holding entity of WME for a reported US$ 400 million. Ari Emanuel is the CEO of Endeavor. PIF’s financial advisor for this deal is Michael Klein & Co. Endeavor is being advised by Ares Holdings.

    Alex Wilmot-Sitwell of BAML Resigns

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    Mubadala Invests in No Fly Zone Drone Radar Company



    Data Collective led a US$ 15 million Series A round into Salt Lake City-based Fortem Technologies, Inc., a company that works on solutions that can detect, identify and classify drones in real time to maintain airspace safety. Other investors in the round include Boeing, Mubadala Investment Company, Manifest Growth, New Ground Ventures and Signia Venture Partners.

    Ibrahim Ajami, Head of Mubadala Ventures said in the press release, ” Mubadala is excited to work with Fortem and its outstanding leadership team to help grow its business to new markets.”

    Ajami added, “We strongly believe the TrueView radar is essential to maintain a safe airspace for both the aircraft and the critical infrastructure on the ground.”

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