THE Netherlands-based ING Group has joined forces with a Beijing partner to set up a $500 million fund to invest in enterprises in Beijing.
The fund is expected to be launched shortly and listed in the middle of next month, according to sources.
About $100 million has been raised so far, with conglomerates and financial houses including New World Development, ING Bank, Guangdong Development Bank, Henderson Land and China Resources Holdings agreeing to subscribe for the new shares.
The fund is understood to be closed-end and restricted to institutional investors only.
ING Group, which will take a one per cent stake, is the sponsor and underwriter for the new issue. Other underwriters include Bank of China Securities, AFH Securities and Wardley.
Beijing Investment and Information Advisory Centre will be responsible for identifying investments in Beijing. It is known that a number of enterprises have signed letters of intent for equity participation.