PHOTO
Investment holding company Hong Kong ChaoShang Group Ltd. on Thursday said it has signed a non-binding MoU with Saudi Arabia's Public Investment Fund (PIF) for a potential $500 million investment aimed at providing the company with convertible debenture and loan financing.
The total investment comprises of $100 million for convertible debenture and $400 million for the loan, the Hong Kong stock exchange listed company said in a filing.
The investment, which will be fully funded by the sovereign wealth fund, will be finalised over the next three months.
The investment is expected to bolster the company’s working capital and expansion of existing businesses. Backed by the fund, ChaoShang could potentially also look at investing in industries like mining and healthcare.
The ChaoShang Group is principally engaged in trading, money lending, factoring, finance leasing and financial services businesses in China and Hong Kong.
Saudi Arabia’s sovereign wealth fund has sought investment opportunities in China as it diversifies holdings globally. In the first quarter of 2024, it upped its stake in e-commerce giant Alibaba by 11% to 1.61 million shares.
PIF also has holdings in two other Chinese American depositary receipts, Pinduoduo and BeiGene.
(Reporting by Brinda Darasha; editing by Seban Scaria)
