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MILAN, Italy, Sept. 19 -- Dagong Europe expects the interest of Chinese investors in European utilities to remain strong, Milan-based European branch of Dagong Global Credit Rating Co., Ltd., China's rating agency, said on Friday.
In a commentary, the agency said the low business risk profile, long-term stable returns and high technological standard of European network utilities have been increasingly attracting Chinese investors.
"The large Chinese state-owned banks and utilities have intensified their activity and have invested over 8 billion euros (10 billion U.S. dollars) in European utilities over the past three years," Richard Miratsky, Head of Corporates Analytical Team at Dagong Europe, said.
"We believe further opportunities for Chinese investors might arise through involvement in the large-scale investments needed to facilitate the increase in renewable energy sources, ensure security of supply and enhance European energy market integration," Francesca Russo, Director of Corporates Analytical Team at Dagong Europe, commented.
Russo added required investment over the next decade could reach up to 150 billion euros (192 billion U.S. dollars) for electricity and 72 billion euros (92 billion U.S. dollars) for gas networks.
Dagong Europe expected opportunities to arise through participation in sizable investment projects including joint ventures, rather than direct ownership.
The European branch was the result of a joint venture between Dagong Global Credit Rating in Beijing, one of the few notable non-U.S.-based credit rating agencies, and Milan-based Mandarin Capital Partners, a leading private equity fund by institutional investors from Europe and China.
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