Guodong Raises $150 Million from Sovereign Wealth Fund in the Middle East – NBC US NEWS

A Chinese Communication firm has raised 150 million from a Sovereign Wealth Fund in one of the Middle Eastern countries. Notably, Chinese merchants and investors now seek business collaborations in the Middle East as economic slowdown hits the territory.

Details on the Sovereign Wealth Fund Investment 

Guodong Network Communication Group is a known Chinese communications service and infrastructure provider. According to the China Renaissance spokesperson, Guodong reached the deal with a sovereign wealth fund in one of the countries in the Middle East.

Note that the China Renaissance is one of the country’s leading financial companies that provides trustworthy services across investment management and financial solutions.

However, the spokesperson did not reveal the identity of the sovereign wealth fund. Also, the Chinese communication firm, Guodong did not respond to Reuters when it sought its comments.

Notably, the deal came up as China is currently facing an economic slowdown coupled with the U.S. and Chinese trade war. The current situation is making it difficult for Chinese firms, institutions, and money managers to raise new capital easily and expand their businesses. 

This difficulty has forced Chinese investors and merchants to increase their interest in the Middle East to explore fundraising opportunities and business collaborations.

Furthermore, the China Renaissance spokesperson reported that the deputy general manager at Guodong Ji Xiaoling stated that the proceeds from the funds raised will be used to sponsor the expansion of all base stations belonging to the communication firm to foster its business performance.

Ji Xiaoling also shared that Chinese telecom operators could invest more in the optimization, transformation, and upgrading of communication networks as mobile data traffic increases in China. He also noted that this will open more market development prospects for Guodong.

More Information on Guodong Telecom Firm

Guodong is a private company founded in 1997 and focuses on the rental and construction of communications structures in China. The firm has 40, 000 base stations and also provides cloud computing services in the country. 

According to information from its website, the company is the second giant communication company after Tower Corp Ltd owned by the government of China. Again, the private communication firm also provides an internal wireless delivery system and Internet of Things (IoT) services.

It has annexes and subsidiary offices in 31 provinces of China and is stationed in more than 300 regional cities in China Mainland. Guodong is in partnership with China Telecom, China Unicom, and China Mobile. These are also big operators in the telecommunication space of China.

Remarkably, Guodong’s investors include Abu Dhabi’s sovereign wealth fund, Morgan Stanley, and top China investment banks like International Capital Corp (CICC) and CITIC Group Corp. Another investor is one of China’s insurance firms referred to as the Ping An Group.

In April 2021, Guodong had a Securities deal with CITIC Group Corp to help it get China’s investment bank’s pre-listing tutorial but later backed off from the listing process.

Notably, in 2022, the firm obtained $99 million in senior loans from the International Finance Corporation (IFC), a World Bank’s private sector arm. The loan was used to support the establishment of its 9,000 telecommunication towers in some poor regions of China.

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