The Asian Development Bank (ADB) is making its first foray into the airport business in China, said the Manila-based lender in a press release on Friday.

The project will involve a $50-million equity investment from ADB in HNA Airport Holding (Group) Co Ltd, a private company primarily invests in airports and airport operations.
 
ADB is co-investing in HNA Airport Group with funds managed by Pacific Alliance, including ARC Capital Holdings Ltd. and Pacific Alliance Asia Opportunity Fund Ltd, said the multilateral development finance institution.

The investment will assist HNA Airport Group secure the confidence of international investors and attract more funds to continue expanding in the airport sector. While the company has already achieved significant success and has established a sound reputation in the industry, it is still at the onset of its planned expansion.

The project will support HNA Airport Group's expansion and capital expenditure plan to privatize, rehabilitate, expand, upgrade and operate small- and medium-sized airports in the less developed central and western regions of China, ADB said.

"Private sector participation accompanied by funding and experience is clearly needed in the development of the airport sector in the country, especially in the central and western regions," said Sherwin Pu, investment specialist of ADB's Private Sector Operations Department.