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Hyflux Ltd: Progressive Project Financing

By Pierre Hillion,  Jean Wee
Published 25 Jan 2011
Reference 5692
Topic Economics & Finance
Industry Financial Services,  Food and Beverages Production
Region Asia
Length 32 page(s)
Language English
Inspection copy
Teaching note
6.00
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Prizes & Awards

Winner of 2010 EFMD Case Writing Competition Award, Finance and Banking Category

Summary

The growth of Hyflux Limited (Hyflux) required it to become more financially sophisticated. As part of its “asset-light” funding strategy – optimising the use of capital by realising asset values early to keep a lean balance sheet - Hyflux spun off 13 water plants to a business trust, Hyflux Water Trust (HWT).

Teaching objectives

To study the different options of funding for Hyflux, the pros and cons of listing a business trust, including the corporate governance issues involved in such a structure, and which is a better investment opportunity - Hyflux or HWT.

Keywords
  • Project finance
  • Business trust
  • Renewable resources
  • Infrastructure funds
  • Spin-off
  • Water industry
  • Asset light strategy
  • Corporate governance
  • RD0111
  • AR1011
  • AR2011
  • Corporate Governance
  • Corporate Governance for Family Firms
About the authors
Hillion

Pierre Hillion

Professor of Finance
Wee

Jean Wee


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