Hengyang Petrochemical Logistics Limited, a leading logistics service provider primarily engaged in the storage and transportation of liquid petrochemicals in China, has entered into a subscription agreement with a company owned by Macquarie Everbright Greater China Infrastructure Fund L.P. (MEGCIF), for an investment of RMB271.25 million (US$44 million) by the fund into Hengyang Holding Pte. Ltd.

MEGCIF is an infrastructure fund managed by Macquarie Group Limited (Macquarie) and China Everbright Limited (Everbright).

The total investment comprises an equity investment of RMB244.31 million (US$39.5 million), and the advance of RMB26.94 million (US$4.5 million) under a convertible loan agreement, in each case upon completion of the Subscription Agreement.

The net proceeds will be used for the Group's business expansion along the Yangtze River and corporate restructuring exercise, including a buyback of a 40% equity interest in its two subsidiaries in Wuhan and Chongqing.

The construction of new petrochemical jetties and storage tanks with an aggregate storage capacity of approximately 240,000 cubic meters in the Group's three subsidiaries in Wuhan, Chongqing and Yueyang is expected to complete in the next one or two years. Together with the expansion of its existing plant in Jingjiang, Jiangsu, the Group's overall storage capacity is expected to be increased significantly from 265,600 cubic meters to approximately 962,600 cubic meters in the next two years.

Immediately following completion of the Subscription Agreement, the fund will own 35% of the issued share capital of Hengyang Holding Pte. Ltd.