Eximbank of China is planning to launch the second edition of the China-LAC Cooperation Fund, two sources told Infralogic.

The vehicle would follow the inaugural Cayman Island-registered China-LAC Cooperation Fund, a USD 1bn quasi-sovereign wealth fund established in 2016 focusing on energy and infrastructure in Latin America and the Caribbean.

The second China-LAC fund is likely to have a similar size as the debut fund and be set up offshore and denominated in US dollars, according to the sources. It may invest in hydrogen projects, they said.

The launch of the new fund could possibly involve the participation of financial institutions from Latin American countries, one of the sources said. Its lifespan is likely to be at least 10 years.

The vehicle would likely continue to focus on minority stakes as a purely financial investor.  Like the original fund, the new vehicle may be open to debt, equity and mezzanine capital investments, according to the sources.

The first China-LAC Cooperation Fund, which drew commitments from China’s State Administration of Foreign Exchange, has deployed capital in projects including the Sao Simao hydropower plant in Brazil. The USD 2.25bn project is majority owned by China’s State Power Investment Cooperation.

The fund is also a minority shareholder of Brazil’s TCP container terminal project.

In 2020, China Merchants Port sold a 22.5% stake in the project to the China Portugal Cooperation Development Fund and the China-LAC Cooperation Fund.

Another of its investments is a social housing project in Suriname.

Other sectors the fund has invested in include power transmission, mining, manufacturing and agriculture, according to the sources.

Eximbank of China did not reply to a request for comment.