Hong Kong-based China Merchants Port Holdings has announced that it will increase capital to its joint venture Djibouti Asset Company for its development of commercial and infrastructure projects at the port of Djibouti.
The deal will be funded by the capital increase from the company, China Merchants Investments Limited (CMI) and Cheer Signal (a wholly-owned subsidiary of China Merchants Shekou Industrial Zone Company) in accordance with their respective shareholdings in Lac Assal Investment Holding Company Limited (Asset Joint Venture). The company, CMI and Cheer Signal will fund $12m, $12m and $6m, respectively into the Asset Joint Venture.
Lac Assal Investment Holding, is a company incorporated in Hong Kong formed by the company, CMI and Cheer Signal for the purpose of investment into the Djibouti Asset Company.
The Djibouti Asset Company was established to invest and provide financial support to develop commercial and infrastructure projects in Djibouti International Free Trade Zone.
China Merchants Group has being investing in the Port of Djibouti for several years, which locates at the mouth of the Red Sea.
The port is a shipping transshipment hub for cargoes passing in and out of East Africa with strong growing potentials.