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Overview

China Eximbank provides EUR 295 million lending facility to China National BlueStar Corporation to finance the acquisition of the silicone business of Rhodia SA

Commitments (Constant USD, 2023)$694,447,090
Commitment Year•2006Country of Activity•FranceDirect 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
Oct 26, 2006
Start (actual)
Oct 26, 2006
End (actual)
Jan 31, 2007
Last repayment (originally scheduled)
Oct 23, 2018

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 Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

  • China National Bluestar (Group) Co., Ltd.

Loan description

China Eximbank provides EUR 295 million lending facility to China National BlueStar Corporation to finance the acquisition of the silicone business of Rhodia SA

Interest type•UnknownMaturity•12 years

Narrative

Full Description

Project narrative

In 2006, China Eximbank and China National BlueStar Corporation agreed to terms on a EUR 295 million lending facility to China National BlueStar to finance the company's acquisition of Rhodia Group SA's global silicones business. The facility has a tenure of 12 years with an unknown interest rate. The acquisition of Rhodia Group's silicone business involves the company's business activities and manufacturing assets. Rhodia's silicones were used in the semiconductor industry for applications like mold release agents, encapsulants, and other specialized components. China National BlueStar Corporation is a Chinese state-owned company and a subsidiary of ChemChina Group Corporation. The acquisition agreement was signed on October 26, 2006, before being finalized on January 31, 2007. Prior to the merger, Rhodia characterized its silicones business as having "a small market share with a poorly developed geographical presence."

Staff comments

1. China National BlueStar (Group) Corporation is a large-scale state-owned enterprise, which is a specialized subsidiary of ChemChina Group Corporation. it is headquartered in Beijing. See https://www.sec.gov/Archives/edgar/data/1062814/000130817907000017/rhodia_form6k.htm 2. Rhodia is a global specialty chemicals company recognized for its strong technology positions in the Performance Materials, Functional Chemicals and Organics and Services clusters. See https://www.sec.gov/Archives/edgar/data/1062814/000130817907000017/rhodia_form6k.htm 3. Silicon metal is used in (i) the production of silicon of extreme purity, referred to as polysilicon which is in turn used for producing solar cells or with an even greater purity for electronics (semiconductors and microchips).