China Investment Corp to invest USD 700 million in Mongolian
Saturday, 31 Oct 2009
China Knowledge reported that China Investment Corp has agreed to invest up to USD 700 million in Iron Mining International Ltd a privately owned Hong Kong registered company focused on iron mining in Mongolia.
As per report the terms of CIC's investment in Iron Mining International involve a USD 500 million convertible loan. The company has the option to increase the loan to USD 700 million.
CIC expects to boost its capital by acquiring natural resources and property assets as the global economy is recovering.
Commodities have been a major focus of CIC's investment strategy, said CIC Chairman Lou Jiwei, adding that the company has allocated US$110 billion for overseas investment and that 50% of the funds have been deployed. Originally, CIC planned to set aside US$67 billion for overseas investment.
CIC has invested US$40 billion in other assets so far this year. It had invested a total of US$13.52 billion by the end of last year, sources said.
On Tuesday, CIC announced another sizeable Mongolian deal. It agreed to invest US$500 million in Canadian company SouthGobi Energy Resources Ltd, a unit of Ivanhoe Mines Ltd.
