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Tritech inks MOUs with Chinese firms on possible fintech foray
WATER and environmental group Tritech has inked two Memoranda of Understanding (MOUs) with Chinese firms Ooway Technology and China Business Credit Guarantee (CBC) that could result in an entry into fintech as well as the emergence of a new controlling shareholder.
In a bourse filing on Sunday, Tritech said that the first MOU involves the Catalist-listed company possibly assisting CBC in providing services for the cross-border financing platform and a credit product developed by Ooway Technology.
CBC is a state-owned enterprise (SOE) that assists other SOEs in raising capital overseas and intends to expand its business by assisting clients in issuing USD-denominated bonds in Singapore, Tritech said in its filing.
Meanwhile, Ooway is said to be a B2B fintech company that advises SOEs on the issuance of USD-denominated bonds overseas and helps privately-owned Chinese companies to raise USD-denominated funds, including loans, from offshore and onshore financial institutions.
The second MOU involves Tritech investing in Ooway via a share swap arrangement. In its Sunday filing, Tritech initially said that the share swap will see Hao Dong Ting, whom Tritech cited as the founder of Ooway, become the controlling shareholder of Tritech.
However, in a clarification announcement on Monday, Tritech said that Ooway is “jointly co-founded and wholly owned by an international professional team”. The company told BT that the share swap would see Ooway become the controlling shareholder of Tritech.
Meanwhile, Tritech would acquire an “investment-level” stake in Ooway. If the MOUs proceed into definitive agreements, there may be material changes to the share capital and shareholding of Tritech, the company said.
If the MOUs proceed into definitive agreements, there may be material changes to the share capital and shareholding of Tritech, the company said.
The Chinese bond market, the third-largest in the world, is attractive with increasing interest from Chinese SOEs to raise capital offshore by issuing USD-denominated bonds abroad, said Jeffrey Wang, managing director of Tritech, in a press release.
"We will be keen to have the opportunity to work hand-in-hand with CBC and Ooway as this partnership presents a rare opportunity for the Group to service and address this burgeoning market," he added.
"We understand that for SOEs and Chinese private companies, raising capital offshore is arduous, complicated and it involves risks. Our platform aims to provide a holistic solution to help our members raise capital offshore in an efficient and cost-effective manner," said Eve Yang, chief strategic officer of Ooway.
Tritech shares closed at S$0.032 on Friday, up 0.3 cent.