Mubasher: Kuwait Investment Authority (KIA) has allocated $200 million to a 2.4 billion Chinese Yuan ($337 million) worth of high-speed rail investment fund organised by China’s largest investment bank, CICC, Caixin Global reported.
According to a statement by CICC Capital, other investors in this fund include Agricultural Bank of China, one of the country’s “Big Four” state-run banks.
Following this financing, Kuwait’s sovereign wealth fund has become the first foreign investor in China’s modern high-speed rail network, in a step to bringing more private money into a system whose construction has cost billions of dollars.
“The fund will invest in a 300-kilometre (186 miles) line connecting Jinan and Qingdao, two major cities in East China’s Shandong province,” Caixin Global said.
Kuwait’s financing will get a 7.16% stake in the rail line in exchange for the investment, according to a local media report.
It is worth noting that construction of the rail line amounts to nearly 60 billion Yuan and was completed last December.
