(Yicai) Aug. 13 -- Chinese private equity companies ICBC Asset Management and Guohua Investment Management have established a CNY15 billion (USD2.1 billion) fund that will invest in internally and externally run projects of the state-owned mining and energy giant CHN Energy Investment Group, Securities Times reported.

ICBC Asset Management, which is the debt-to-equity swap arm of ICBC, injected more than CNY10 billion (USD1.4 billion) into the fund, while Guohua, which is a subsidiary of CHN Energy, poured in CNY4.5 billion (USD627 million), the report said. This gives the two parties 70 percent and 30 percent stakse respectively.

The Guohua Energy Investment Fund will be managed by Guohua. Its executive partners are Guohua and ICBC Capital, an investment management company under Beijing-based ICBC.

Just a week ago, ICBC sold another fund, namely the ICBC Financial Investment Green Energy Equity Investment Partnership, which was co-funded by ICBC Asset Management and ICBC Capital, with a capital contribution of CNY7.5 billion (USD1 billion).

ICBC Asset Management, which focuses on the new energy, new materials, semiconductors and biomedicine sectors, was one of the first commercial banks in China to implement debt-to-equity swaps. The Nanjing-based company has a registered capital of CNY12 billion (USD1.6 billion), making it ICBC’s largest subsidiary in terms of registered capital.

ICBC Asset Management, which was set up in September 2017, has invested in 114 foreign investment funds and 188 public investment events so far. Since the beginning of the year, the company has subscribed to eight private equity investment funds as a limited partner.

Editor: Kim Taylor