CDC, Norfund to invest $10 million in ACI Motors
The company eyes capacity expansion for motorbike and farm machinery units alongside with setting up an assembly plant for Foton commercial vehicles
UK state-owned development finance institution CDC and Norwegian state-owned investment fund Norfund together will invest $10 million in ACI Motors, announced the recipient company Sunday.
The investment follows the trail of Dutch development financier FMO's $15 million investments in ACI Motors last year.
"Sixty five percent of the upcoming investment equivalent to around Tk84 crore would be used as capital expenditures, while the remaining amount would be spent as working capital," said FH Ansarey, managing director of the agro machinery and automobile subsidiary of ACI Limited, a leading listed conglomerate of the country.
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"We will further expand the capacity of our existing Yamaha motorcycle manufacturing plant and the agro machinery units," he said, adding, "We are also planning to set up an assembly plant for Foton branded commercial vehicles."
With money pouring in, Yamaha motorcycle manufacturing plant would see the annual capacity go up to 1,08,000 units immediately, which will be raised to 1,40,000 units later.
Besides, the company is continuously expanding its farm machinery capacity, and planning for assembling combine harvesters to further consolidate its market leadership.
"Even not being the major market player, Foton is already the fastest growing commercial vehicle brand, and leading the Chinese commercial vehicle brands in terms of market share nowadays," said Ansarey.
The investors will get ACI Motors Limited's convertible preference shares at Tk540 where Tk440 would be the premium against the face value of Tk100.
Against the equity instrument, the investors would receive dividends as much the company's board recommends for the general shareholders, and the investors would get their preference shares converted into ordinary shares before the company goes public in the coming years.
"We thank the investors for believing in our growth story," said Ansarey.
Brummer and Partners Asset Management Company is the local advisor to the investors.
