China Investment Corp said on Saturday the reference price for its stake in US-based Morgan Stanley was fixed between US$48.07 and US$57.68 per share.
The state-owned forex investment firm reached an agreement with Morgan Stanley on Wednesday to invest US$5 billion into the second largest investment bank in the US.
The injection was used to purchase equity units that are mandatorily convertible into Morgan Stanley common shares.
The two sides agreed CIC would be able to convert the equity units into Morgan Stanley common shares at a price no more than 1.2 times the reference price when the conversion was due.
CIC said the share of common stock underlying the convertible securities would not be issued until the exercise of the stock purchase contracts on August 17, 2010.
The equity units carried a fixed annual interest rate of nine percent before conversion. Shares held by CIC were agreed to reach no more than 9.9 percent of outstanding shares.
Wednesday's agreement came as Morgan Stanley reported a larger-than-expected loss in the fourth fiscal quarter due to a US$9.4-billion write down from its exposure to subprime and other mortgage-related investments.
CIC said the purchase meets its global investment strategy to seek good long-term returns with acceptable risk. The investment was the third made by the company. Early this month, it invested US$3 billion in private equity firm Blackstone Group.
CIC was set up in September with US$200 billion from the country's foreign exchange reserves.