Saudi Arabia’s Public Investment Fund (PIF) has signed a non-binding memorandum of understanding (MoU) with ChaoShang Group Ltd. for a potential $500 million investment.
The investment is reportedly aimed at providing the Hong Kong-listed company with convertible debenture and loan financing to bolster its working capital and drive the expansion of existing businesses.
Out of the $500 million, one-fifth ($100 million) is expected to be destined for convertible debenture, while the rest ($400 million) will form the loan, ChaoShang Group said in a filing. The funding is expected to be finalised over the next three months.
The ChaoShang Group’s main activities include trading, money lending, factoring, finance leasing and financial services businesses in China and Hong Kong. To date, PIF has holdings in two other Chinese American depositary receipts, Pinduoduo and BeiGene.
