IMM Investment has announced that it has invested USD 40 million (KRW 49 billion) in United Water Corporation via its ‘Green Infrastructure Fund’.
IMM plans to deploy funds from ‘Infra Fund VII’ to become a stakeholder of United Water, one of the major private companies in the Chinese water treatment market with more than 16 years of experience.
United Water has 23 water infrastructure operations in 13 cities and in 9 provinces in China. The operations are based on Concession Agreements with local governments that provide exclusivity and generate stable revenue streams. United Water will continue to expand its business in China as the water treatment market continues to grow.
In recent years, the Chinese Government has placed a more significant emphasis on improving water quality
China has been developing the water treatment industry through various policies and incentives in order to re-solve regional water requirements and meet the increasing expectations on water quality and demand. The increased focus on private sector participation by the government for the development of the industry will create more opportunities for industry players like United Water.
In recent years, the Chinese Government has placed a more significant emphasis on improving water quality and thus has started to require more investment into infrastructure. IMM’s investment in United Water is the first by a Korean player into this trend of growing infrastructure development in China.
In November 2019, United Water signed a contract in Bangladesh on a PPP (Public-Private Partnership) project to build and operate a water supply network in Dhaka, the capital of Bangladesh. Furthermore, United Water is looking to utilize its business expertise to further expand its business in the Asia Pacific region.
IMM, since having Hyun Chan Cho (the former director of Asia Infrastructure and Resources at International Finance Corporation) newly on board in 2019, has been actively seeking opportunities in the Asian Infrastructure market. United Water is looking to develop a long-term partnership with IMM and benefit from IMM’s experience in managing diverse environment companies.
Based on the partnership with United Water, IMM will continue to seek additional opportunities in water treatment and infrastructure in China, as well as expand its business in other Asian countries.