MORE than 40 Chinese insurance companies and asset managers have jointly started an investment firm, to raise 40 billion yuan ($6 billion) to finance energy and infrastructure projects overseas, China’s insurance regulator has said.
The new firm, China Insurance Investment Ltd., will boost China’s energy security by directing part of its first fund to finance Russia’s $27 billion Yamal liquefied natural gas (LNG) project, the China Insurance Regulatory Commission (CIRC) said in an online statement on Monday, without providing any details.
The project has been struggling to raise funds because of international sanctions on Russia over its involvement in the conflict in eastern Ukraine.
China’s Silk Road Fund has already provided 700 million euro to Yamal LNG and obtained a 9.9 percent stake in the project. Chinese lenders are also set to provide $12 billion in credit.
China Insurance Investment Ltd., headquartered in the Shanghai free trade zone, was launched by 46 Chinese corporate shareholders, comprising 27 insurance companies, 15 insurance asset management companies and four private companies.
Source: Guardian News