Frontier Services Group, a leading provider of integrated security, logistics and insurance services, announced today a capital plan to raise a total of HK$832 million ($107 million); shareholder CITIC Group increased its stake from 15.84% to 28.4%; new shareholder China Taiping Insurance took a 7.48% stake; the funds will be used to set up global offices, expand the team, enlarge the asset base and provide working capital for service projects along the Belt and Road, operating in 20 countries worldwide.
Frontier Services Group is listed on the Hong Kong Stock Exchange (stock code 00500HK). The group is headquartered in Hong Kong, with its business development center in Beijing and branches in Shanghai, Dubai, Nairobi and Johannesburg. Frontier is a leading provider of integrated security, logistics and insurance services for companies operating in frontier markets, transporting and protecting people, cargo and equipment by sea, land and air from Africa to Asia.
Since 2016, in support of the Belt and Road Initiative, Frontier has defined its strategy as "providing integrated security, logistics and insurance solutions." This risk management solution combining security, logistics and insurance services is a uniquely innovative model. The capital increase from CITIC Group and new investors China Taiping Insurance and Trinity Gate demonstrates the superiority of Frontier's business model, coverage, strategy and team over the past few years, and also reflects the significance of Frontier's role in helping address the complex and unique challenges faced by Belt and Road projects.
Security: The group believes security is vital to safeguarding Belt and Road personnel and the success of projects. The funds raised will be used to enhance the company's security capabilities, including building training bases for security personnel, registering new security licenses, expanding the international security team and purchasing equipment and vehicles needed for operations.
Over the past 12 months, Frontier's global footprint has expanded significantly, with new offices in key countries, registered security licenses, established training bases, and a first-class international, multilingual team of security professionals. For example, in 2017 the group acquired the International Security Defense College (ISDC) in Beijing. The college is one of the most complete security training platforms in China, providing training not only for Frontier employees to meet international standards, but also pre-deployment training for clients' overseas assignments. In addition, the group has set up regional security offices in Asia, the Middle East and Africa to support business in those regions, centrally managed by its global security center in Dubai.
Logistics: The group has operated its logistics business since 2013 and, in support of the Belt and Road Initiative, has expanded from Africa into the Middle East and Asia. The funds raised will be used to expand service coverage, purchase additional assets, enlarge the global professional team and support logistics operations. Through coordination between regional offices and the global logistics center in Shanghai, the company expects to serve more clients in Africa, Asia and the Middle East.
The group's senior logistics experts are capable of managing large-scale projects and can provide international clients with secure end-to-end logistics solutions worldwide. These secure logistics solutions integrate security and insurance services, meet the needs of frontier markets, and ensure cargo arrives on time without financial impact on projects. The group has shipping platforms in Europe, Africa and Central Asia, with more than 20 aircraft. The ability to transport people and materials, combined with security and insurance services, gives Frontier a significant advantage in frontier markets. Whether medical evacuation, mass evacuation or simply transporting personnel to a new project site, Frontier can provide an integrated solution. Focusing on "last mile" logistics, with offices in 20 strategic markets worldwide and local professionals, the group is uniquely positioned to provide secure sea, land and air logistics services for Belt and Road projects' personnel, equipment and cargo.
Insurance: Frontier plans to use the funds raised to expand its international insurance expert team and station them in key regional offices. The group's insurance department incorporates security and logistics services into integrated risk management solutions.
For each project, Frontier conducts a comprehensive risk assessment and provides a customized risk management solution integrating design, training, physical and technical measures, transportation and insurance. The group's insurance team has established strategic partnerships with leading domestic and international insurers to develop unique and innovative insurance products. The group's local teams can communicate face-to-face with clients, understand their needs, provide customized solutions, and maintain close cooperation with international insurance markets. This is what truly differentiates Frontier from other service providers. The addition of China Taiping Insurance will enhance the group's qualifications and ability to provide clients with unique insurance solutions.
Source: The Economic Observer 2018-03-06