China Development Bank has agreed to provide RMB20 billion (US$2.9 billion) in financing support to Shandong Inspur Cloud Service Information Technology Co., Ltd. before the year of 2020 to help it expand, according to an announcement.
Inspur Cloud, a unit of Chinese information technology firm Inspur, specializes on providing cloud computing services to local Chinese governments, their various committees and bureaus, as well as state-owned enterprises.
China Development Bank, which awarded Inspur multiple orders for hardware equipment previously, will provide "long-term and stable financing support" to its cloud unit, the announcement said.
The support will potentially be in the form of investment or loan commitment to Inspur Cloud during the 13th five-year plan, Inspur said without providing more details. China's 13th five-year plan covers the year between 2016 and 2020.
Inspur Cloud currently provides cloud computing and big data services to 90 provincial and city governments, as well as over 100 state-owned enterprises. It is aiming to more than double the amount of its clients, served by its seven core cloud computing data centers around the country.
Inspur, formerly named Langchao, is a Chinese multinational information technology company headquartered in Jinan, Shandong province. The company's most important product is server hardware, but it also acts as a software developer.
Inspur has three publicly listed subsidiaries in Shanghai, Shenzhen and Hong Kong, Inspur Information, Inspur Software and Inspur International.