State-owned CDB teams up with asset manager

China Development Bank is teaming up with one of the world's largest natural resources asset managers for a joint venture, as the capital-rich state-owned bank embarks on more offshore investments over the next few years.

Gateway Energy & Resource, the Asian unit of Washington-based EIG Global Energy Partners, has signed a deal with CDB to form the venture that would seek a back-door listing in Hong Kong, said Barry Cheung, a non-executive director of Gateway.

EIG manages more than US$10 billion worth of assets, making it one of the largest institutional investors in natural resources.

Speaking in an exclusive interview with the South China Morning Post, Cheung said the deal, if successful, would not only provide CDB a new investment platform but also offer many retail investors a rare opportunity to participate in such investments.

"Hong Kong investors have a strong interest in resources-related companies, which is not surprising, given China's strong appetite. They believe resources-related companies should do well in the long run," he said.

The move came after Gateway failed to launch an initial public offering early last year after it received regulatory approval for listing amid the weak market environment. The offering had sought to raise about US$200 million.

The company now plans to list on the exchange through a merger with China Development Bank International Investment.