Aug 29 (Reuters) – Guodong Network Communication Group, a Chinese communications infrastructure and service provider, has raised $150 million from a Middle Eastern country’s sovereign wealth fund, the deal’s adviser China Renaissance said on Tuesday.
The deal comes at a time when Chinese entrepreneurs and investors have shown increased interest in exploring business cooperation and fundraising opportunities in the Middle East, as China’s economic slowdown and Sino-U.S. tensions have complicated the efforts of Chinese money managers and companies to expand and raise fresh capital.
The statement did not identify the sovereign wealth fund. A China Renaissance spokesperson declined to comment, while Guodong didn’t immediately respond to a Reuters request to comment.
The proceeds from the capital raising will be used to support the expansion of Guodong’s communication base stations, according to a China Renaissance statement, citing Guodong’s deputy general manager Ji Xiaoling.
Guodong, founded in 1997, has 40,000 communications base stations and provides data centres that can support cloud computing in China, according to its website.
It has received funds from investors including Morgan Stanley, the investment arms of top Chinese investment banks CICC and CITIC and a sovereign wealth fund from Abu Dhabi, said the website.
Reporting by Roxanne Liu and Kane Wu; Editing by Rashmi Aich
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