New Stock News | The Sizhun Infrastructure Fund has submitted its listing application to the Hong Kong Stock Exchange, with a globally diversified investment portfolio covering the Asia-Pacific region.

According to information disclosed by the Hong Kong Stock Exchange on October 17, Infrastructure Fund of Funds Private Capital Open-Ended Fund Type has submitted its listing application to the Main Board of the Hong Kong Stock Exchange. Sizhou Capital Asia Limited is its investment manager, and DBS Bank is its exclusive listing agent. The fund has a globally diversified investment portfolio covering the Asia-Pacific region, with a substantial proportion of assets allocated in North America, Europe, and the Asia-Pacific region. The prospectus shows that Infrastructure Fund of Funds Private Capital Open-Ended Fund Type is registered as a closed-end fund established as a Hong Kong public open-ended fund company, with limited liability as an investment fund formed in the form of a company under Hong Kong laws. The fund's investment objective is to provide regular, sustainable, long-term income distribution and capital appreciation to investors through investments in a diversified portfolio of senior and junior economic infrastructure debt. The fund has better liquidity than non-listed private credit funds, allowing investors to buy and sell fund shares daily for more flexible and active management of the investment portfolio. The fund focuses on providing private senior and junior loans to borrowers focused on ownership, operation, financing, management, or service provision of infrastructure assets or projects. Its industry and sub-industries include renewable energy, utilities, data centers, telecommunications, and others. According to industry consultant reports, global infrastructure spending is expected to reach around $54.4 trillion from 2025 to 2040. However, actual investment demand is estimated at $65.3 trillion, resulting in a significant investment shortfall of $10.9 trillion. This significant shortfall reflects continued underinvestment, driven by factors such as fiscal constraints faced by governments worldwide, regulatory challenges encountered by banks in allocating to alternative asset classes since the global financial crisis, and the resulting mismatch between current funding trajectories and the growing demand for new and alternative infrastructure. Therefore, private capital plays an increasingly important role in addressing the investment shortfall. The fund has a competitive advantage and can seize opportunities arising from the imbalance between global infrastructure demand and supply of capital, providing flexible and professional capital solutions to match the unique risk-return characteristics of global infrastructure projects. The fund intends to diversify its investment portfolio according to its investment policy. Investment demand in North America is primarily focused on urgent infrastructure renewal projects in transportation and public utilities, with the United States undergoing infrastructure upgrades supported by substantial public and private investment in the transportation and clean energy sectors. To capture relevant investment opportunities, the fund intends to allocate a significant proportion of its assets to North America (up to 60% of total assets) and also plans to invest in Europe (including the UK and Europe), with investment allocation limits of 30% and 60% of its total assets, respectively. While North America and Europe remain key regions for existing lending opportunities, the fund also intends to include several more developed economies in the Asia-Pacific region in its geographic distribution of the investment portfolio to seize opportunities arising from the increasing economic vitality and rising infrastructure financing needs in the Asia-Pacific region. The prospectus indicates that the investment value of the fund may change from time to time due to various factors, including the performance of relevant borrowers (including their actual and expected financial condition and performance), as well as expected changes in interest rates, exchange rates, inflation, bond ratings, and general market pricing expectations for similar investments. These changes may have a significant adverse impact on the fund and asset value.