IFS Capital has entered a non-binding memorandum of understanding (MOU) with Hong Kong-listed Tat Hong Equipment Service (THES) to provide leasing services and tower crane financing in China, the Singapore-listed company said in a filing to SGX Monday.
Tat Hong, with a fleet of more than 1,000 tower cranes, offers services in China, providing consultancy, technical design, construction and after-sale services to construction contractors in the infrastructure, energy, commercial and residential sectors, the filing said.
Via a joint venture with Tat Hong, IFS Capital will expand its footprint to China by offering financing services and participating in the mainland’s economic growth, the filing said.
IFS Capital will hold 60 percent of the joint venture, with Tat Hong holding the remainder, the filing said.
“The tremendous growth potential of the PRC and its infrastructure-led economic strategy will need to be complemented with access to financing solutions. Therefore, the establishment of this joint venture is timely and strategic to support the fast-growing economy,” IFS Capital said in the statement.
Randy Sim, IFS Capital’s group CEO, said: “We aim to support local SMEs with responsible financing as they ride the tremendous long term growth potential of the Chinese economy. This leasing JV marks the starting point for us to explore new growth opportunities throughout China.”