DBS PRIVATE EQUITY SETS UP USD100M CHINA INVESTMENT VEHICLE

DBS PRIVATE EQUITY SETS UP
USD100M CHINA INVESTMENT VEHICLE

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RMB Fund is among the first by a foreign private equity group;
underscores DBS’ commitment to China

SINGAPORE, 26 February 2009 – DBS Bank announced today that DBS Private Equity, its private equity arm, has established a USD100 million onshore RMB Fund, to invest in promising unlisted companies in China.

DBS Private Equity is among the first few foreign private equity investor groups to set up a local investment vehicle in China. The initiative reinforces DBS’ commitment to expand its franchise in the country, and underscores the bank’s conviction in the strength and potential of the Chinese economy.

The investment vehicle, DBS Private Equity Enterprise (星展资本创业投资企业) (the “Fund”), is wholly owned by DBS Bank through its subsidiaries DBS Nominees (Private) Limited and DBS Capital Investments Ltd. The Fund will provide capital to mid-to-late stage China companies in growth industries, with a view to eventually listing them on the domestic A-share market. Over the next two to three years, the Fund will invest USD10-20 million on average, in each investee company, in exchange for minority stakes in them. DBS Private Equity will leverage its Asia banking expertise, as well as extensive product knowledge and network, to support investee companies in growing their business.

Said Melvin Teo, Managing Director and Head of DBS Private Equity: “China is an important growth market for DBS, and we believe in its long-term potential. As one of the best capitalised banks in Asia, DBS is well-positioned to stand by our customers and cultivate new ones, at a time when many of our competitors are scaling back their operations. We are staying the course in Asia, and the creation of the Fund allows us to partner promising PRC companies to create long-term value for the Chinese economy.”

In conjunction with the establishment of the Fund, DBS Private Equity will open a Shanghai office to further expand its investment activities in China. This will complement DBS Private Equity’s existing network of contacts in China and will help to strengthen its deal flow origination and value-creation capabilities.

DBS Private Equity is the principal investment arm of DBS Bank. Currently, it has two main offices in Singapore and Hong Kong, covering the South and North Asia markets respectively. DBS Private Equity provides equity capital and mezzanine debt financing to investee companies to assist them in their growth and expansion. It also supports them in areas such as business development, strategic planning and corporate finance activities.

As part of Southeast Asia’s largest bank, DBS Private Equity is able to leverage on DBS’ network across 16 markets, as well as assemble product expertise from Corporate Banking, Treasury Services, Debt and Equity Capital Markets, Advisory, Syndication and Research, to enhance the performance of investee companies and create long-term value.

DBS Private Equity made its first investment in China in 2002, and has since made successful investments in Chinese companies including Yingli Green Energy Holding Co Ltd, Yangzijiang Shipbuilding (Holdings) Ltd and China Infrastructure Machinery Holdings Ltd.

DBS is one of the first few foreign banks, and the first Singapore bank, to incorporate in China in May 2007. In November 2008, DBS Bank (China) officially opened a branch in Tianjin. In addition, it launched its first sub-branch, which includes a DBS Treasures priority centre, in Beijing. Today, DBS has seven branches in Beijing, Guangzhou, Nanning, Shanghai, Shenzhen, Suzhou and Tianjin, and six sub-branches in Beijing, Shanghai, Suzhou and Guangzhou.

About DBS
DBS is one of the largest financial services groups in Asia with operations in 16 markets. Headquartered in Singapore, DBS is a well-capitalised bank with “AA-” and “Aa1″ credit ratings that are among the highest in the Asia-Pacific region.

As a bank that specialises in Asia, DBS leverages its deep understanding of the region, local culture and insights to serve and build lasting relationships with its clients. DBS provides the full range of services in corporate, SME, consumer and wholesale banking activities across Asia and the Middle East. The bank is committed to expanding its pan- Asia franchise by leveraging its growing presence in mainland China, Hong Kong and Taiwan to intermediate the increasing trade and investment flows between these markets. Likewise, DBS is focused on extending its end-to-end services to facilitate capital within fast-growing countries in Indonesia and India.

DBS acknowledges the passion, commitment and can-do spirit in each of its 15,000 staff, representing over 30 nationalities. For more information, please visit www.dbs.com

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