Logistics service provider Hengyang Petrochemical Logistics completed a subscription agreement with MEGCIF Investments 5 (MEGCIF5), together with its subsidiary Hengyang Holding.

A total investment of 271.25 million yuan (S$55.6 million) has been made into Hengyang Holding by MEGCIF5.

This is made up of an equity investment of 244.31 million yuan, and an advance of 26.94 million yaun under a convertible loan agreement, upon the completion of the subscription agreement.

The net proceeds will be used for the group's business expansion along the Yangtze River and corporate restructuring exercise.

This includes buying back a 40 per cent equity interest stake in its two subsidiaries in Wuhan and Chongqing.