Chinese private equity firm JD Capital plans to jointly establish a RMB2 billion (US$320 million) environment investment fund with Shenzhen-listed water purifying plant operator, Beijing Water Business Doctor Co., Ltd., according to a securities filing.
The fund aims to invest in emerging environmental protection businesses including water supply, production and optimization of water, drainage, water treatment, and recycling services.
Beijing Water will commit RMB150 million toward the fund’s first phase of fundraising, which is targeting RMB500 million. JD Capital will be responsible to raise RMB350 million from third-party investors.
In December 2014, the Chinese government is reported to plan to launch a RMB50 billion (US$8.13 billion) environmental protection fund to provide low interest long-term priority loans to pollution fighting companies.