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Overview

ICBC contributes EUR 58 million to EUR 330 million syndicated loan to Wuhan Iron and Steel to facilitate its acquisition of ThyssenKrupp Tailored Banks (Linked to Record ID#100668)

Commitments (Constant USD, 2023)$79,625,066
Commitment Year•2013Country of Activity•GermanyDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2013
Start (actual)
Jun 30, 2013
End (actual)
Jun 30, 2013

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

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned companies

  • Wuhan Iron and Steel (Group) Corp. (WISCO)

Loan description

CDB and ICBC contributions to syndicated loan for Wuhan Iron and Steel's acquisition of ThyssenKrupp Tailored Banks

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2013, China Development Bank (CDB) contributed $130 million to a syndicated loan and the Industrial and Commercial Bank of China (ICBC) contributed EUR 58 million to an EUR 330 million syndicated loan to Wuhan Iron & Steel Group Corp. (WISCO) to facilitate its acquisition of ThyssenKrupp Tailored Blanks. Record ID#100668 captures CDB's contribution and Record ID#100667 captures ICBC's contribution. The acquisition was completed on July 31, 2013. ThyssenKrupp Tailored Blanks is an important supplier of body systems to the auto industry. Tailored products are made of individual sheets of different steel grade, thickness or finish, joined together by laser welding. Headquartered in Duisburg, Germany, the global ThyssenKrupp Tailored Blanks has been producing tailored blanks since 1985 and is the leading supplier in this segment with a roughly 40% global market share. The company has some 930 employees (approximately 300 in Germany) at 16 plants in Germany, Sweden, Italy, Turkey, the U.S., Mexico and China. Included in the sale to WISCO was ThyssenKrupp Lasertechnik GmbH, a Ravensburg, Germany-based company which supplies laser welding equipment as well as systems for materials and parts handling, automation, assembly, and quality control. ThyssenKrupp's products range from machines and industrial services to high-speed trains, elevators, and shipbuilding. The subsidiary ThyssenKrupp Marine Systems also manufactures frigates, corvettes, and submarines for the German and other navies.

Staff comments

1. The Chinese project title is 武钢收购德国蒂森克虏伯激光焊接业务股权项目. 2. There is some evidence that Bank of China also played a role in the acquisition (https://pic.bankofchina.com/bocappd/report/201403/P020140326592422464575.pdf). This issue warrants further investigation.