China's Touchstone Capital Partners Ltd. signed a memorandum of understanding with FinEst Bay Area Development Oy to provide €15 billion in funding for the construction of an undersea railway tunnel connecting the capital regions of Finland and Estonia.

FinEst Bay Area, the tunnel's developer, said a third of the funding will be made as private equity investment, giving Touchstone a minority stake in the project, and two-thirds will be debt financing.

Touchstone's funding is available as the project progresses, FinEst Bay Area said, adding that financial details will be negotiated over the next six months.

In December 2018, FinEst Bay Area also secured the first external funding of €100 million for the project from Dubai-based ARJ Holding LLC.