LDC London Asia

RNS Number:9109J
London Asia Capital PLC
18 March 2005


            London Asia Capital PLC ("London Asia" or "the Company")


              Appointed Adviser to Chinese Infrastructure Projects

London Asia, the Greater China focused investment and merchant banking group,
has been appointed corporate finance adviser to a series of energy, waste and
water projects in Hubei Province, China, totaling approximately US$1.0 billion
in capital expenditure.

London Asia's partner for energy and water infrastructure projects in China, the
Kaidi Group, has signed an agreement with the local government of Xiangfan,
Hubei Province, for investment into the City's energy sector and public
utilities. The agreement focuses on investing in, as well as implementing,
energy and environment protection related projects that utilise waste to
generate clean energy. Projects covered include biomass power plants, municipal
waste power plants, small to medium sized hydraulic power stations, waste water
treatment and wind power stations. A new company, Hubei Xiangfan Kaidi Renewable
Energy Company Ltd ("Xiangfan RE"), has been formed to undertake the projects.

London Asia has been appointed preferred corporate adviser to Xiangfan RE, with
responsibility for structuring transactions, arranging financing, advising on
technology transfer and listing on international markets. London Asia will
receive fee income for each project worked on, in the form of monthly retainers
for general structuring and advice on the projects, and success based fees
calculated as a percentage of both debt and equity funds raised for each
project. London Asia also has the right to co-invest in all the projects.

Simon Littlewood, London Asia Chief Executive, said: "Projects such as this are
a key area of our expansion. They generate over a sustained period regular fee
income and the potential for large success fees and additional investment
opportunities. The energy and environment sectors are growing rapidly in China
and we are well placed, as a result of our strong relationship with China's
Kaidi Group, to take advantage of the opportunities. London Asia adds real value
to these projects through our access to Western capital markets and investors,
our team's experience in structuring such transactions, and our access to
Western technology suppliers and businesses, many of whose technology is
applicable to the Chinese market but who are reluctant to enter that market
directly themselves."

ENQUIRIES:
Paul McManus, Binns & Co                           Tel: 020 7153 1485
                                                   Mob: 07980 541 893

Simon Littlewood, CEO                              Tel: 020 7248 7578

Jonathan Wright, Seymour Pierce                    Tel: 020 7107 8000


About the Energy and Environmental Market in China

China's rapid economic growth, with over 9.5% growth achieved in 2004 and an
average annual growth of over 8% for the last 20 years, has created increasing
energy needs, with power shortages common in many parts of China. Environmental
problems associated with expanded power generation and rising consumption are on
the rise, with an estimated 13% of China's arable land affected by pollution.

The Chinese Government has set as a top priority the need to generate increasing
amounts of energy from renewable sources, and to increase the efficiency of
existing supplies, not only to reduce environmental damage but also to counter
rising global oil and coal costs.

About The Kaidi Group
Headquartered in Wuhan, The Kaidi Group was founded in 1993 and in 1999 listed
part of its business on China's Shenzhen Stock Exchange, with a current market
capitalization of over #130 million.

The Kaidi Group's core business is the development and application of new
technologies and products for environmental protection and power generation. It
carries out EPC contracting of engineering design, complete plant construction,
installation, commissioning and training for coal burning power plants, flue gas
desulphurization projects, clean coal burning power plant technologies and
domestic waste treatment and power generation projects. For additional
information, see www.china-kaidi.com.


About Xiangfan

Xiangfan is the second largest city of Hubei Province, located in the north-west
corner of Hubei province, neighbouring Henan province. It has an area of 19,566
square km and a population of 6 million. Its major industries are automobile,
auto components, textile, pharmaceutical and tourism. Last year GDP reached RMB
46 billion (USD 6 billion). You can find more information on http://
www.xfol.com/.


About London Asia Capital plc

London Asia is an AIM listed investment and merchant banking group focused on
the SME market in Greater China.

London Asia has identified that as a result of the fast growing Chinese economy
and an underdeveloped financial services industry, there is strong demand for
both capital and skilled financial advisory services in China, especially among
small-to-medium sized enterprises.

London Asia operates three principal businesses:

   * Investment of own funds in profitable businesses in Greater China, with
     exits via IPO or trade sale;
   * Investment Banking services, mainly corporate finance advisory (fund
     raisings, IPO's and M&A); and
   * Fund management

London Asia has a growing list of investments, paid for via a mix of cash and
London Asia shares, focused on distinct industry sectors:

   * Financial Services
   * Media
   * Information technology & communications
   * Infrastructure, energy & natural resources & environment

London Asia has offices and management teams, as well as strong local partners,
across the Greater China region, as well as alliances with a number of Chinese
business parks, which gives London Asia access to a significant number of
Chinese businesses. These provide direct access to investment opportunities,
close relationships with corporate clients, a good level of control over
existing investments, access to local market intelligence as well as providing
leverage through a network of partners. These work in conjunction with our
international network in London, New York, Singapore and Hong Kong.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
APPBRGDXSDBGGUR

London Asia Capital (LSE:LDC)
Historical Stock Chart
From Jun 2024 to Jul 2024

London Asia Capital (LSE:LDC)
Historical Stock Chart
From Jul 2023 to Jul 2024