Friday, January 28, 2011

Hyflux Ltd: Progressive Project Financing

HILLION Pierre, WEE Jean
© 2011 INSEAD Case Study
Also available: Teaching Note

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).

Pedagogical 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.