KKR Leads US$450 Million Financing for Tianrui Cement
Hong Kong / Zhengzhou.— Tianrui Group Cement Co., Ltd. (“Tianrui Cement” or the “Company”) and Kohlberg Kravis Roberts & Co. L.P. (“KKR”) announced today that Titan Cement Limited, an entity controlled by affiliates of KKR, has successfully completed a series of investments, with a total consideration of US$115 million, through which it will acquire a minority stake in Tianrui Cement. In connection with KKR’s investment, Tianrui Cement has also received commitments from the International Finance Corporation and an international banking syndicate led by JPMorgan for an additional US$335 million of USD and RMB long-term financing. Proceeds from KKR’s equity investment and the bank financing will primarily be used to support the Company’s growth and capacity expansion. The loan facility is the first sponsor-related, RMB-denominated long-term syndicated loan arranged by international banks in China.
Dr. Xiao Jiaxiang, Chairman and CEO of Tianrui Cement, said “We are very pleased to have KKR, one of the world’s oldest and most experienced private equity firms, as a strategic investor in Tianrui Cement. Having announced and completed over US$400 billion of transactions globally and with a focus on working in partnership with management, KKR is an ideal partner, one that invests for future competitiveness and growth. KKR’s equity investment also brings with it long term, low cost financing from a leading international bank consortium to support our future growth and expansion. This strongly reinforces our confidence in Tianrui Cement’s long term growth potential and competitive advantage. More importantly, it enables us to benefit from KKR’s extensive global resources and management expertise, which will help us further improve our operations and build our Company into a world-class enterprise.”
David H. Liu, a KKR partner, said, “We are excited to have the opportunity to invest in Tianrui Cement. The Company’s strengths and competitive advantages in its target markets, augmented by its experienced and dedicated management team, are truly impressive. We are optimistic about the long-term growth prospects of China’s cement industry and the enormous opportunity Tianrui Cement has to further grow and expand its business. By leveraging the global resources and expertise of KKR and with the support of the local governments, we look forward to working with Tianrui Cement’s strong management team to fully capitalize on the long term growth potential and consolidation of the cement industry in China.”
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