New Hope to get Temasek Backing for Fund

Chinese animal feed producer New Hope Group plans to set up a $200 million overseas fund that counts Singapore’s sovereign wealth fund Temasek among its key investors, Reuters reports. New Hope Vice President Wang Hang said the fund would mainly invest in businesses related to food security, food safety and farm technology, according to Reuters.

(Reuters) – New Hope Group Co Ltd , China’s biggest animal feed producer, plans to set up a $200 million overseas fund that counts Singapore’s sovereign wealth fund Temasek among its key investors, a senior executive said on Monday.

New Hope Vice President Wang Hang said the fund would mainly invest in businesses related to food security, food safety and farm technology. He said New Hope would be a key investor in the fund.

New York-listed Archer-Daniels-Midland Co and Japan’s Mitsui & Co Ltd are other confirmed investors in the fund, New Hope President Liu Yonghao said earlier this month.

New Hope, China’s largest privately owned agricultural conglomerate and parent of Shenzhen-listed Sichuan New Hope Agribusiness Co Ltd, is betting on the nation’s rapid urbanisation to buoy the demand and strain the supply of farm products.

The overseas fund comes on top of New Hope’s domestic agricultural fund worth 1 billion yuan ($157.3 million) under its first-phase investment.