LCP Lon.Asia China

RNS Number:9010A
London Asia Chinese Private Equity
26 July 2007


26 July 2007



London Asia Chinese Private Equity Fund Limited
("LACPEF" or "the Fund")

Investee Company Raises US$20 million


LACPEF, the AIM listed (LCP.L) China focused investment fund, is pleased to
announce that its investee company China New Energy Limited has raised up to
US$20 million of new funds via the issue of convertible bonds.


China New Energy Limited ("CNE"), listed on the UK's PLUS Stock Market, is a
specialist biofuels business. The Fund invested #2.2 million for a 25% stake in
CNE in September 2006.  The new investment values the Company at approximately
US$100 million (#50 million).


The investment is in two tranches, with an initial drawdown of US$12 million 
("the First Tranche"), and a second tranche of US$8 million being conditional.


The convertible bonds have a maturity of three years.  The First Tranche is at a
zero interest rate, with the second tranche at an interest rate of up to 15%,
dependent on various factors.  The conversion price of the bonds is based on a
multiple of the estimated profits for the year ending 31 December 2007.


The investor in the bonds is an alternative investment management fund based in
the US with approximately US$15 billion under management.


Mr Tang, China New Energy Chief Executive, said: "The new capital will be used
to expand our international operations, where we are seeing demand from a number
of countries, and to make acquisitions of businesses using our technology and
the biofuel to produce specialty chemicals."



Simon Littlewood, Director of the Fund, said: "CNE has shown significant
progress since we invested, expanding its operations internationally as well as
securing significant new projects in its home market.  The proposed expansion
into ownership of facilities will provide stable recurring income to complement
its core turnkey solution provider business."



For further information please contact:


John West/Andrew Dunn         Cecilia Wong                    Hugh Field
Tavistock Communications      London Asia Ltd                 Collins Stewart 
                                                              Europe Limited
Tel: 020 7920 3150            Tel: +852 22518373              Tel: 020 7523 8350
                              cecilia.wong@londonasia.com





About China New Energy Limited

CNE has established itself as the leading brand in China for turnkey ethanol
production equipment. The Company has a successful track record, with its
technology used in over 35 projects to date. CNE is supported by strong drivers
with the demand for biofuel, seen as an alternative to oil, growing rapidly and
supported by changes in legislation both in China and elsewhere as countries
seek to reduce their dependence on imported oil.



For additional information, visit the Company's web site
www.chinanewenergygroup.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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