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Overview

China Merchants Bank provides a €400 million EUR bridge loan to a Chinese company for the Ledvance GmbH Acquisition Project (Linked to Record ID#109387)

Commitments (Constant USD, 2023)$480,007,570
Commitment Year•2017Country of Activity•GermanyDirect Recipient Country of Incorporation•LuxembourgSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 21, 2017
Start (actual)
Mar 3, 2017
End (actual)
Mar 3, 2017

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • China Merchants Bank Co., Ltd.

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Eurolight Luxembourg Holding s.à.r.l.

Loan description

China Merchants Bank provides a €400 million EUR bridge loan to a Chinese company for the Ledvance GmbH Acquisition Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On March 3, 2017, OSRAM Licht AG sold its 100% equity stake in LEDVANCE GmbH (a semiconductor company that operates in the LED lighting technology space) through the establishment of Eurolight Luxembourg Holding s.à.r.l. (a Luxembourg-incorporated special purpose vehicle) to a consortium of Chinese investors — consisting of IDG Capital, the LED packaging manufacturer MLS CO., LTD. (MLS) and Yiwu State-Owned Assets Operation Center (Yiwu) — for €485.7 million EUR. In order to facilitate this acquisition, one or more members of the consortium obtained an €400 million EUR bridge loan from China Merchants Bank and MLS obtained an ¥727 million RMB, 7-year loan (final maturity date: January 21, 2024) from the Jiangxi Branch of Export-Import Bank of China. OSRAM Licht AG announced CFIUS approval of the deal in February 2017.

Staff comments

1. Ledvance GmbH is a German multinational LED lighting and smart home technology company, with headquarters in Garching bei München, Germany. Ledvance specializes in lighting products and networked light applications that evolved from the divestment of Osram Licht AG in July 2016. 2. AidData assumes the borrowing institution was Eurolight Luxembourg Holding s.à.r.l., an affiliate entity owned by it.